DELAWARE INVENTION INDEX – MARCH 2025

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

Delaware Invention Index March 2025: 1.22% (C+ grade)

Delaware Invention Index over the last year:

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).

Discussion:

In March, the Delaware Invention Index scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced a considerable upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.

Here is the table of Delaware Invention Index scores from blog posts published between September 2024 and March 2025:

Trends in the scores over time:

The Delaware Invention Index scores from September 2024 to March 2025 exhibit fluctuations. The highest score was in October 2024 at 1.75%, while the lowest was in November 2024 at 0.81%. After November, there was a recovery with scores rising to 1.54% in December 2024 and peaking at 1.58% in January 2025. However, the scores slightly declined in February and March 2025, settling at 1.23% and 1.22% respectively.

Possible reasons behind increases or decreases:

The spike in October 2024 could be attributed to increased patent activity or economic growth during that period. The subsequent drop in November might reflect a slowdown in innovation or economic challenges. The recovery in December and January suggests a rebound in innovation activities, possibly due to policy changes or increased R&D investments. The slight decline in the following months could indicate stabilization or minor fluctuations in innovation output.

Implications of higher vs. lower scores for innovation and the local economy:

Higher Invention Index scores suggest robust innovation activity relative to economic growth, indicating a healthy R&D environment and potential for economic expansion. Lower scores may signal reduced innovation efforts or economic stagnation, which could impact long-term economic competitiveness. Consistently high scores can attract investments and talent, while lower scores might necessitate policy interventions to stimulate innovation.

Any standout anomalies or significant shifts worth noting:

The significant drop from 1.75% in October to 0.81% in November 2024 is notable, indicating a sharp decline in innovation activity or economic performance. The rapid recovery in the following months suggests that this was a temporary setback. Monitoring such fluctuations is crucial for understanding the dynamics of innovation and implementing timely measures to support sustained economic growth.

Learn more about the Invention Index here.

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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

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