October 2025: 0.81% (D+ grade)

Alaska inventionINDEX October 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).

Alaska inventionINDEX Scores – Last 12 months

The Alaska inventionINDEX for October 2025 stands at 0.81%, earning a D+ grade. This score indicates a negative sentiment regarding innovation output in the state, particularly when compared to the C+ grades achieved in September and August 2025, both at 1.17%. The current performance also falls below the 1.17% recorded in October 2024, suggesting a year-over-year decline in this specific month. Examining the past year, the index has fluctuated, with several months registering D+ or F grades, and only a few reaching C+.

A higher inventionINDEX score, typically anything above a C grade, signifies a positive outlook for innovation and economic recovery. Such scores suggest that the state’s GDP growth is robustly supported by patent production growth, indicating a healthy environment for research and development. This positive sentiment can attract investment, foster new businesses, and ultimately lead to a more resilient economy, better equipped to navigate economic challenges. Historically, periods of higher scores, such as the A+ grades seen in February 2024, April 2023, November 2021, October 2021, July 2021, April 2021, and March 2021, correlate with stronger innovation output.

Conversely, a lower inventionINDEX score, particularly those falling into the D+ or F categories, carries negative implications. These scores suggest that patent production growth is not keeping pace with GDP growth, or may even be declining, signaling a potential stagnation or contraction in innovation. This can lead to a less competitive economy, reduced opportunities for job creation, and a slower recovery from economic downturns. The prevalence of F grades, such as those in March 2025, February 2025, December 2024, and numerous other months throughout the 60-month period, highlights periods where innovation output was notably weak.

The current D+ grade in October 2025, following a slight upward trend in the preceding months, warrants attention. While the economy continues to stabilize, the inventionINDEX suggests that Alaska’s innovation landscape may still be grappling with various factors, including potential backlogs in patent applications or lingering effects from past economic incidents. Monitoring these trends and understanding the underlying causes of fluctuations will be crucial for fostering a more robust and innovative economic future for Alaska.

Discussion:

In October, the Alaska inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable downward 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.R&D invention index Alaska