CONNECTICUT INVENTIONINDEX | SEPTEMBER 2025

September 2025: 0.95% (D+ grade)

Connecticut inventionINDEX September 2025: 0.95% (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

In September 2025, the Connecticut inventionINDEX recorded a score of 0.95% with a D+ rating. This places it slightly above the August 2025 score of 0.92% (D+) and the September 2024 score of 0.94% (D+), indicating a marginal improvement over the immediate past year’s performance for the same month. However, when viewed against the broader 60-month historical data, this score remains in the lower tier, particularly when compared to periods of higher innovation output such as October 2020 (1.36%, A+) or November 2020 (1.28%, A). The current D+ grade suggests that while there might be some incremental progress, the state’s innovation output is not yet consistently reaching the positive sentiment benchmark of a C grade or higher.

A higher inventionINDEX score and a corresponding higher grade, such as a B or A, signify a robust and growing innovation ecosystem. This positive sentiment indicates that patent production growth is outpacing or keeping pace with GDP growth, which can lead to several beneficial outcomes. These include increased economic competitiveness, job creation in high-tech sectors, and a more resilient economy capable of navigating economic shifts effectively. States with consistently higher inventionINDEX scores often attract more investment, foster a dynamic entrepreneurial environment, and are better positioned for long-term economic prosperity.

Conversely, a lower inventionINDEX score, particularly those in the D or F range, suggests a deceleration or stagnation in innovation output relative to economic activity. This can have several negative implications for the state. A sustained period of lower scores may signal a decline in research and development efforts, reduced patenting activity, and a potential loss of competitive edge. Such trends can deter new businesses, lead to a brain drain as talent seeks opportunities elsewhere, and ultimately hinder economic recovery and growth. The consistent presence of D and F grades, as seen in various months within the historical data, underscores the challenges in maintaining a strong innovation trajectory.

Observing the historical data, the Connecticut inventionINDEX has experienced fluctuations, with periods of strong performance interspersed with lower scores. For instance, while September 2025 shows a D+, there were months like July 2021 (1.02%, C) and March 2021 (1.24%, A-) that demonstrated significantly higher innovation output. The current score, while an improvement over the previous month, suggests a need for sustained efforts to foster an environment conducive to innovation. Understanding these trends and the factors influencing them is crucial for implementing strategies that can elevate the state’s innovation standing and drive future economic success.

Discussion:

In September, the Connecticut inventionINDEX scored a negative sentiment which was higher than the previous year’s average but 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.