July 2025: 5.22% (A+ grade)

Florida inventionINDEX July 2025: 5.22% (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).

Florida inventionINDEX Scores – Last 12 months

The inventionINDEX score for July 2025, at 5.22%, places it well above the historical average of 3.99% observed over the last 61 months. This strong performance is complemented by an A+ rating, which has been consistently awarded in a majority of the recorded months. While the index demonstrates some natural month-to-month fluctuations, the current score reflects a period of robust and healthy innovation activity, sustaining a positive trend that has been largely maintained across the last five years.

A high inventionINDEX score and a favorable A+ or A rating often correlate with significant positive outcomes for the economy. Such scores indicate a thriving ecosystem that can attract substantial investment and top talent. Periods of high performance, such as the peak score of 11.18% in October 2023, can signify major advancements and a highly competitive environment. This success can lead to the creation of new businesses, increased job opportunities, and a more dynamic economic landscape, all of which contribute to long-term prosperity.

Conversely, a lower score, like the 1.94% recorded in January 2021, and its corresponding B- rating, can signal potential areas of concern. These periods of lower performance may indicate a slowdown in key innovation metrics, a decrease in funding for new projects, or challenges in attracting and retaining skilled professionals. A decline in the score can act as an early indicator for businesses and policymakers, suggesting a need for strategic intervention to avoid a prolonged downturn and maintain a competitive edge.

In conclusion, the current inventionINDEX score for July 2025 represents a strong position when compared to its historical performance. The frequent attainment of A+ ratings over the past five years suggests a resilient and productive environment. While periodic declines are part of any long-term trend, the overall pattern indicates a sustained commitment to innovation, which is a vital component for continued economic development and future growth.

Discussion:

In July, the Florida 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 Florida office provides R&D tax credit consulting and advisory services to Jacksonville, Miami, Tampa, Orlando, St. Petersburg, Hialeah, Tallahassee, Fort Lauderdale, Port St. Lucie, Cape Coral, Pembroke Pines, Hollywood, Miramar, Gainesville, Coral Springs, Clearwater, Palm Bay, Miami Gardens, West Palm Beach and Lakeland.

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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