July 2025: 1.09% (B- grade)

Connecticut inventionINDEX July 2025: 1.09% (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).

Connecticut inventionINDEX Scores – Last 12 months

Based on the provided historical data for the last 60 months, the Connecticut inventionINDEX score for July 2025 stands at 1.09%, corresponding to a ‘B-‘ rating. This score represents a notable increase compared to the recent past, which saw several months with scores below the 1.0% threshold and a low of 0.82% in November 2024. While the current score is above the 60-month average of approximately 1.01%, it remains below the peak performance observed in previous years. This suggests a positive trajectory in recent activity, though it has yet to reach the heights of its strongest historical periods.

The achievement of a higher inventionINDEX score and a corresponding top-tier grade, such as an ‘A’ or ‘B’, signifies a robust and thriving ecosystem of innovation. Historically, the index reached its peak at 1.36% in October 2020, earning an ‘A+’ rating. Such scores are indicative of a high volume of patents filed by Connecticut-based inventors, a strong indicator of inventive momentum and economic vitality. A high score suggests a period of intense creative output, which can lead to new businesses, job creation, and long-term economic growth for the state, reflecting a strong foundation for future technological and commercial success.

Conversely, a lower inventionINDEX score and a poor grade, such as a ‘D’ or ‘F’, point to a period of reduced innovative activity. The lowest score in the last 60 months was 0.82% in November 2024, which received an ‘F’ rating. This can signal a slowdown in the development of new intellectual property and may have negative implications for future economic competitiveness. A consistent pattern of low scores could indicate challenges within the state’s research and development sectors or a decline in the overall entrepreneurial climate. These periods highlight the importance of strategic interventions and support to foster and reignite the inventive spirit.

Overall, the historical table provides a valuable long-term perspective on Connecticut’s inventive landscape. The data reveals a fluctuating but generally stable performance, with the majority of ratings falling in the ‘C’ and ‘D’ ranges. While the recent ‘B-‘ grade for July 2025 is a positive development, the historical context shows there is room for improvement to return to the exceptional performance seen in late 2020. The inventionINDEX serves as a crucial barometer for understanding the ebb and flow of innovation, providing insights that can inform policies aimed at nurturing and sustaining a strong environment for new ideas.

Discussion:

In July, the Connecticut inventionINDEX scored a positive sentiment which was higher than the previous year’s average and 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 Connecticut office provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

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.

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