GEORGIA INVENTIONINDEX | JULY 2025

July 2025: 2.35% (B+ grade)

Georgia inventionINDEX July 2025: 2.35% (B+ 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).

Georgia inventionINDEX Scores – Last 12 months

The latest inventionINDEX scores for Georgia show a notable upward trend in recent performance. The July 2025 score of 2.35% with a B+ rating represents a significant recovery after a dip in the preceding months. This is a substantial improvement from June’s 1.55% and C+ rating. While the scores for the first half of 2025 were somewhat inconsistent, hovering between C+ and B- ratings, the strong finish in July indicates a resurgence in the factors that contribute to the index. This suggests that recent initiatives or economic factors may be positively impacting the state’s innovation output.

Looking at the broader historical context, the inventionINDEX has shown considerable fluctuation over the past 60 months. The state has achieved its highest marks in periods such as October 2020 (3.23% A+), September 2020 (2.97% A+), and March 2021 (3.16% A+), demonstrating the capacity for exceptional performance. Conversely, there have also been periods of lower activity, such as November 2024 (1.23% C) and March 2025 (1.40% C+). The overall pattern is one of cyclical peaks and valleys, with the state consistently maintaining a strong presence in the B to A rating range, punctuated by occasional periods of moderate decline.

A higher inventionINDEX score and a superior rating carry significant positive outcomes for the state. A robust score indicates a healthy and dynamic innovation ecosystem, which is crucial for long-term economic growth. A higher rating suggests a strong correlation between economic growth and patent production, which often attracts venture capital, fosters the creation of new businesses, and retains a skilled workforce. This positive cycle can lead to job creation, increased economic diversification, and a stronger reputation as a hub for innovation and technological advancement.

Conversely, a sustained period of lower scores and ratings has potential negative implications. A declining inventionINDEX may signal a slowdown in research and development, a less competitive business environment, or a lack of investment in key innovative sectors. These conditions could make the state less attractive to both new talent and established companies, potentially leading to a “brain drain” and a stagnation of the economy. Maintaining a consistently high score is therefore vital for ensuring the state of Georgia remains at the forefront of innovation.

Discussion:

In July, the Georgia inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 Georgia office provides R&D tax credit consulting and advisory services to Atlanta, Columbus, Savannah, Athens, Sandy Springs, Roswell, Macon, Johns Creek, Albany, Warner Robins, Augusta, Valdosta, Smyrna, Brookhaven, Dunwoody, Peachtree Corners, Marietta, Alpharetta, Milledgeville and Rome.

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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