FLORIDA INVENTIONINDEX | SEPTEMBER 2025

September 2025: 3.54% (A+ grade)

Florida inventionINDEX September 2025: 3.54% (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

In September 2025, the Florida inventionINDEX recorded a score of 3.54% with an A+ rating. This figure indicates a positive sentiment, though it is slightly lower than the previous month’s 3.80% in August 2025 and notably below the 5.22% observed in July 2025. When compared to the average of the prior year, September’s score also shows a slight underperformance, contrasting with a period that experienced a considerable downward trend in the preceding 12 months.

A consistently high inventionINDEX score and grade, such as the A+ ratings frequently achieved by Florida, signify a robust environment for innovation. This positive sentiment suggests that the state’s economy is effectively fostering conditions for patent production growth relative to its GDP growth. Such an environment can attract investment, stimulate job creation, and lead to long-term economic stability and recovery, particularly in the post-pandemic era. It reflects a dynamic ecosystem where new ideas are being developed and commercialized.

Conversely, a lower inventionINDEX score or a declining grade could signal potential challenges within the innovation landscape. While September 2025 maintained an A+ grade, a significant drop in the percentage could indicate a slowdown in patent activity or a disproportionate increase in GDP growth without corresponding innovation. Such trends might suggest underlying economic pressures, reduced research and development capabilities, or a backlog in patent processing. These factors could potentially hinder economic recovery and growth, making it more difficult for the state to adapt to future economic shifts.

Observing these trends over time allows for a comprehensive understanding of Florida’s economic resilience and its capacity for innovation. The inventionINDEX serves as a valuable metric for predicting which states are best positioned for economic recovery and sustained growth. By analyzing these scores, stakeholders can identify areas of strength and potential weakness, informing strategies to further bolster the state’s innovative output and overall economic health.

Discussion:

In September, the Florida inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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.