CONNECTICUT INVENTIONINDEX | OCTOBER 2025

October 2025: 0.87% (D grade)

Connecticut inventionINDEX October 2025: 0.87% (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).

Connecticut inventionINDEX Scores – Last 12 months

The Connecticut inventionINDEX for October 2025 stands at 0.87%, earning a D grade. This score indicates a negative sentiment, falling below the previous year’s average and underperforming the upward trend observed earlier in the year. This contrasts with a slight downward trend experienced in the prior 12 months. Analyzing these historical figures allows for a comprehensive understanding of Connecticut’s innovation output over time, providing valuable insights into economic recovery potential.

A higher inventionINDEX grade signifies robust innovation output, correlating with positive economic sentiment. States achieving grades above C are typically experiencing healthy GDP growth alongside increasing patent production, suggesting a dynamic and thriving economic environment. Such positive indicators can attract investment, foster job creation, and enhance overall economic resilience, particularly in the face of broader economic challenges. A strong innovation index points to a state’s capacity for sustained growth and its ability to adapt and evolve in a competitive landscape.

Conversely, a lower inventionINDEX score, such as the D grade observed in October 2025, implies a negative outlook. This suggests that the state’s innovation output, as measured by GDP growth relative to patent production, is lagging. Such a trend can signal underlying economic vulnerabilities, potentially hindering recovery efforts from economic incidents like the recent pandemic. Factors contributing to a lower score might include reduced research and development capabilities, company closures, or a diminished workforce, all of which can impede the pace of innovation.

Understanding these trends is crucial for policymakers and businesses alike. By monitoring the inventionINDEX, stakeholders can identify periods of both strength and weakness in the state’s innovation ecosystem. This data can inform strategic decisions aimed at stimulating economic growth, supporting R\&D initiatives, and fostering an environment conducive to innovation. The long-term implications of these scores underscore the importance of sustained investment in innovation to ensure economic stability and prosperity.

Discussion:

In October, the Connecticut inventionINDEX scored a negative 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. 

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.