ARKANSAS INVENTIONINDEX | APRIL 2025

April 2025: 1.12% (C+ grade)

Arkansas inventionINDEX April 2025: 1.12% (C+ 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).

Recent inventionINDEX Score Trend (Last 6 Months)

Over the past six months, Arkansas’s inventionINDEX Score has shown slight fluctuations, peaking in December 2024 at 1.20% before dipping to its lowest point in March 2025 at 0.99%. April 2025 saw a modest rebound to 1.12%, indicating a mild recovery in innovation activity. This suggests a cyclical pattern, possibly influenced by end-of-year R&D efforts and policy shifts impacting patent filings or research outputs.

A higher inventionINDEX Score typically reflects increased inventive activity, stronger institutional or corporate R&D, and successful technology development. Arkansas’s peak in December 2024 (1.20%) likely contributed to regional recognition and increased investor confidence. High scores may also correlate with more patent filings, tech-based startups, and federal or private R&D grants, reinforcing the state’s innovation ecosystem.

Conversely, lower scores like March 2025’s 0.99% could imply a slowdown in innovation due to factors such as reduced R&D spending, lagging commercialization efforts, or regulatory constraints. Persistent declines could signal a loss of competitive edge, potentially leading to talent drain or diminished funding opportunities.

In conclusion, while Arkansas’s inventionINDEX Score has remained relatively stable, small variations should be closely monitored. Continued support for research institutions, startup incubation, and innovation-friendly policies will be essential to keep the index above 1.10%, which appears to be a healthy baseline for sustained growth.

Discussion:

In April, the Arkansas inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast 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 Arkansas office provides R&D tax credit consulting and advisory services to Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, North Little Rock, Conway, Rogers, Pine Bluff and Bentonville.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.