CONNECTICUT INVENTIONINDEX | JUNE 2025
June 2025: 0.86% (D- grade)
Connecticut inventionINDEX June 2025: 0.86% (D- 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).
June 2025 Score Shows Slight Dip
Connecticut’s inventionINDEX score for June 2025 is 0.86%, a modest decline from 0.99% in May. This places the state near the lower end of its 12-month range. Although not the lowest score-November 2024 hit 0.82%-it marks a clear retreat from the 1.00% peak seen in December 2024. The recent drop may suggest a slowdown in patent filings or reduced innovation activity across the state.
Trend Indicates Flat Growth
Over the past year, Connecticut’s scores have remained mostly stable, ranging from 0.87% to 0.98%. This consistency suggests a resilient but modest innovation climate. March and April 2025 were both close to June’s figure, at 0.87% and 0.88% respectively. However, without a sustained rise, the state may struggle to gain momentum compared to faster-growing regions.
Benefits of a Higher Score
A higher inventionINDEX score reflects a more vibrant innovation ecosystem. For Connecticut, a score above 1.00% could enhance its reputation as a hub for R&D, attract more venture capital, and create high-value jobs. It also suggests a healthy pipeline of patents from universities, research centers, and private firms.
Risks of a Lower Score
If the trend continues downward, the state may face long-term challenges. Lower invention output can reduce access to federal and private funding, limit tech sector growth, and make it harder to retain talent. Policymakers may need to introduce new incentives to support startups, research initiatives, and patent generation across industries.
Discussion:
In June, the Connecticut inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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 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.
