ARKANSAS INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.19% (B grade)

Arkansas inventionINDEX November 2025: 1.19% (B 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).

Arkansas inventionINDEX Scores – Last 12 months

The inventionINDEX Score for November 2025 stands at 1.19%, earning a ‘B’ rating, which places the recent performance at a level consistent with its historical foundation. Over the entire 60-month period, the average score is 1.18%, meaning the current metric is marginally above the long-term benchmark. However, the average for the most recent 12 months is 1.12%, representing a slight moderation from the 1.21% average observed in the preceding 12-month span. This indicates that while the score maintains a professional level of competence and stability within the B-to-C range, the momentum observed in earlier peak periods has yet to fully re-establish itself.

The positive outcomes associated with achieving a consistently higher inventionINDEX Score and corresponding grades are substantial for the state’s economic profile. Exceptional results, such as the peak score of 1.94% and ‘A+’ rating in October 2023, signify a robust and highly productive innovation ecosystem. These elevated metrics suggest that new ideas are being generated and successfully translated into marketable products or services at an accelerated rate. Such high-level performance enhances the region’s credibility, making it a more attractive destination for essential resources like venture capital, corporate partnerships, and highly skilled technical and scientific talent.

Conversely, a sustained or significant decline in the inventionINDEX Score carries considerable negative implications that warrant careful attention. The lowest historical point, 0.76% with a ‘D-‘ rating in October 2022, illustrates a period where innovative output fell considerably below the expected baseline. Low scores in the ‘C’ or ‘D’ range can signal a stagnation in research and development efforts, a weakening pipeline for new invention disclosures, or significant obstacles in the commercialization process. This downturn can lead to a diminished reputation, making it more challenging to compete for crucial research grants and ultimately slowing the pace of economic diversification and job creation tied to new technologies.

The current ‘B’ rating in November 2025 provides a solid platform, but the marginal 12-month decline suggests that vigilance is necessary to prevent backsliding. The professional focus must now center on implementing targeted strategies to recapture the impressive growth seen during peak performance periods. Ensuring a consistent rate of invention and commercial success that drives the score above the 1.21% prior 12-month average will be key to realizing the full economic potential inherent in a truly high-performing invention index.

Discussion:

In November, the Arkansas inventionINDEX scored a positive 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 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.