July 2025: 1.76% (A- grade)

Delaware inventionINDEX July 2025: 1.76% (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 Scores – Last 12 months

The historical data for the inventionINDEX over the past 60 months reveals a landscape of significant fluctuation, with recent performance showing a notable improvement compared to earlier periods. The latest scores, particularly the 1.76% and A- rating in July 2025, reflect a strong position that stands in positive contrast to the more volatile and often lower scores seen in previous years. For instance, the average score from the last year is significantly higher than the periods in late 2022 and early 2023, which saw several scores below 0.50% and multiple F ratings. The data suggests a recent upswing in inventive activity and a maturing of the ecosystem that supports it.

A consistently high inventionINDEX score, such as the A+ rating in April 2025, signals a robust and thriving environment for innovation. This higher grade suggests that the region is experiencing a period of intense creative output, which can have a ripple effect across the economy. It often indicates strong market confidence, which in turn attracts greater investment, fosters entrepreneurship, and drives job creation. A high score is a positive indicator that new ideas are not only being generated but are also being successfully developed and brought to market, positioning the entity as a leader in its respective fields.

Conversely, a lower inventionINDEX score, such as the D- and F ratings from 2021 to mid-2023, carries serious negative implications. A persistently low score can suggest a stagnation of innovation and a lagging competitive position relative to other markets. This can lead to a decline in investment, as investors may perceive the environment as less dynamic or profitable. A low score might also reflect challenges in the underlying infrastructure that supports invention, such as a lack of resources, talent drain, or an inefficient commercialization process, ultimately hindering long-term economic growth and relevance.

In summary, the inventionINDEX has experienced a broad range of performance over the past five years. The recent period has demonstrated a strong recovery and growth, evidenced by the high ratings in 2025. While this is a positive development, the historical volatility underscores the importance of continued focus on fostering innovation. Maintaining and building upon these recent high scores will be crucial for sustained economic health and for establishing a reputation as a leading hub for inventive activity.

Discussion:

In July, 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 in contrast to the prior 12 months, which experienced a considerable 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 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 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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