ALASKA INVENTIONINDEX | JUNE 2025

June 2025: 0.81% (D+ grade)

Alaska inventionINDEX June 2025: 0.81% (D+ grade)

The inventionINDEX measures innovation output by comparing GDP growth with patent production growth. 

Anything over C grade is positive sentiment; anything under C is negative outlook/sentiment. Using that sentiment, it is possible to observe trends over time, and also compare states/countries. In doing so, we can predict which states have the best chance to recover economically from the pandemic (or any other economic incident that may occur).

The latest inventionINDEX score for Alaska, recorded at 0.81% for June 2025, represents a stable performance when compared to the same score in May and January of this year. This consistency suggests a moderate and sustained level of patent activity and inventive output. However, when placed in the broader context of the past 12 months, the 0.81% reading falls below the peaks of 1.17% achieved in both April 2025 and October 2024, highlighting room for potential growth in innovation.

Encouragingly, the current score is notably stronger than some of the lower periods in the past year, including multiple months-March 2025, February 2025, December 2024, September 2024, August 2024, and June 2024-where Alaska posted a 0.44% score. This improvement from the lowest points signals a recovery and possibly the effects of ongoing support for research and development efforts in the state. It also positions Alaska more favorably within the broader U.S. innovation ecosystem, where higher scores often correlate with increased investments and a stronger entrepreneurial environment.

A higher inventionINDEX score, such as the 1.17% seen in April and October, generally reflects greater patenting activity and technological advancement. This can translate into economic benefits, including job creation in high-tech industries, increased academic collaboration, and heightened attractiveness for federal research funding or venture capital. Such outcomes can also bolster Alaska’s reputation as a center for specialized innovation, particularly in fields like environmental tech, energy, or remote sensing, where the state has unique geographical and strategic advantages.

Conversely, periods marked by low scores-particularly when sustained-may indicate reduced R\&D output, fewer new patent filings, or limited commercialization efforts. This could be the result of budget constraints, talent shortages, or diminishing institutional support. For Alaska, maintaining or improving upon the current 0.81% will require a continued focus on incentivizing innovation across sectors, ensuring that high-potential inventors and startups have access to the resources they need to move discoveries from idea to impact.

Discussion:

In June, the Alaska inventionINDEX scored a negative sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward trend. 

As the economy continues to stabilize in the post-pandemic era, it remains uncertain whether any backlog of applications still exists or if the department has returned to normal processing timelines. The inventionINDEX could also be affected by lingering consequences from the pandemic, such as company closures, reduced workforces, and limited R&D capabilities, which may still be impacting current operations.

Learn More:

Are you thinking of patenting any of your bright ideas? Did you know your research work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? To find out more, please check out our free online eligibility test.

Swanson Reed’s Alaska office provides R&D tax credit consulting and advisory services to Anchorage, Fairbanks, Juneau, Sitka and Wasilla.

Feel free to book a quick teleconference with one of R&D tax specialists if you would like to learn more about R&D tax credit opportunities.

Who We Are:

Swanson Reed is the largest Specialist R&D tax credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D tax credit consulting services to our clients. We have been exclusively providing R&D tax credit claim preparation and audit compliance solutions for over 30 years. 

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.