ARKANSAS INVENTION INDEX – MARCH 2023

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

Arkansas Invention Index March 2023: 1.10% (C+ grade)

Arkansas Invention Index over the last year:

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).

Discussion:

In March, the Arkansas Invention Index scored a positive 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 slight downward trend. There has been no sudden drop in patent numbers, despite the evolving situation with Covid-19. However, it is possible that these approvals are happening on patents applied for prior to the Covid-19 outbreak. If this is the case, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.

In March 2025, the Arkansas Invention Index was 0.99%, corresponding to a C- grade. This represents a decline from February 2025’s score of 1.07% (C+) and January 2025’s 1.08% (C+). The decrease indicates a slight downturn in the state’s innovation output during this period.​

Comparing the March 2025 score to previous months, the downward trend is evident. The consistent decline over these months suggests challenges in maintaining innovation momentum. Factors contributing to this trend could include reduced patent production, slower GDP growth, or both.​

A higher Invention Index score reflects robust innovation activity, potentially leading to economic growth, increased investments, and job creation. Conversely, a lower score may indicate stagnation in innovation, which could deter investment and slow economic progress. Addressing the factors behind the declining scores is crucial for fostering a more innovative and economically vibrant environment in Arkansas.

Learn more about the Invention Index here.

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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

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