ARKANSAS INVENTIONINDEX | JUNE 2025
June 2025: 1.04% (C grade)
Arkansas inventionINDEX June 2025: 1.04% (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).
The Arkansas inventionINDEX for June 2025 stands at 1.04%, representing a slight dip from May’s 1.07% and continuing a modest downward trend observed since April’s peak of 1.12%. While this month’s figure is still above the low point of 0.99% recorded in March 2025, it signals a cooling in innovation momentum compared to earlier in the year. The steady climb that began in January 2024 appears to have plateaued, suggesting that recent innovation activity may be stabilizing rather than accelerating.
When comparing June 2025’s performance to the same period last year, Arkansas has seen a minor decline-down from 1.18% in June 2024. Over the broader 12-month window, the state peaked at 1.40% in October 2024 before gradually declining in the months that followed. This trajectory may reflect a normalization after an unusually strong third quarter in 2024, where invention rates remained consistently above 1.15%. The overall yearly pattern shows Arkansas maintaining a relatively tight band between 1.04% and 1.40%, indicating a level of consistency even amid slight monthly fluctuations.
A higher inventionINDEX typically reflects greater patent activity, increased R\&D efforts, and a dynamic innovation climate-factors that can contribute to economic resilience and attract investment. When the index remains strong, it may signal that local universities, startups, and industries are effectively translating research into intellectual property. This can benefit job creation, competitiveness, and long-term growth, particularly in sectors tied to technology and advanced manufacturing.
A declining score could raise concerns about the state’s innovation pipeline. If the trend persists, it may suggest reduced research funding, delays in commercialization, or waning patent filings. Over time, a weaker index could limit Arkansas’s appeal to venture capital, reduce its influence in tech-driven industries, and signal broader systemic challenges in education, talent retention, or infrastructure. Policymakers and stakeholders may need to assess and respond accordingly to sustain momentum.
Discussion:
In June, 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 similar to the prior 12 months, which experienced a slight 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 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 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.
