DELAWARE INVENTIONINDEX | APRIL 2025

April 2025: 2.03% (A+ grade)

Delaware inventionINDEX April 2025: 2.03% (A+ 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).

Delaware inventionINDEX Score: A Six-Month Analysis

The Delaware inventionINDEX score for April 2025 reached 2.03%, the highest in the past 12 months. This marks a strong upward trajectory when compared to the prior six months, where scores fluctuated but never surpassed 1.75%. Notably, March and February 2025 recorded modest growth at 1.22% and 1.23% respectively, with a more significant rise beginning in January 2025 at 1.58%. The lowest score in the six-month window occurred in November 2024, at just 0.81%.

A higher inventionINDEX score typically signals increased R&D activity, stronger intellectual property filings, and more innovative developments in the region. For Delaware, the 2.03% score in April suggests a surge in innovation-driven initiatives, possibly tied to supportive policy changes, university partnerships, or private sector investment. This growth enhances the state’s competitiveness and potential to attract high-tech industries.

Conversely, lower scores like November’s 0.81% may indicate a slowdown in inventive activity, potentially caused by reduced funding, talent migration, or policy uncertainty. Sustained dips can hinder growth, leading to a less dynamic economic environment and reduced long-term productivity. Maintaining upward momentum is crucial for Delaware to continue fostering a robust innovation ecosystem.

Discussion:

In April, the Delaware 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 Delaware office provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.