GEORGIA INVENTIONINDEX | MAY 2025
May 2025: 1.71% (B- grade)
Georgia inventionINDEX May 2025: 1.71% (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).
The latest Georgia inventionINDEX Score for May 2025 stands at 1.71%, indicating a modest increase from April 2025’s 1.53%. This upward trend continues the momentum seen in the first quarter of the year, suggesting a strengthening innovation climate in the state. While not the highest score in the last twelve months, May’s result is notably higher than the March 2025 figure of 1.40%, and is above the 12-month average of approximately 1.67%. The consistent month-over-month improvement from March through May points to a resurgence in inventive activity that could be attributed to either seasonal factors, increased research investment, or supportive policy initiatives.
Comparing the current score with historical highs and lows reveals important context. December 2024 registered the highest score at 2.07%, followed by October 2024 at 2.01%, signaling peak periods of inventive productivity. In contrast, the lowest score occurred in November 2024 at 1.23%, reflecting a significant dip in innovation. May 2025’s 1.71% places the state’s current innovation performance above the median for the year, suggesting a relatively strong showing. While this is encouraging, it also emphasizes the importance of maintaining policy and economic conditions that can support and possibly replicate the exceptional output seen during prior peak months.
Higher inventionINDEX scores typically reflect increased patent filings, R&D investments, and technological advancement. This is beneficial for Georgia’s economic development, attracting venture capital, fostering job creation in high-tech sectors, and enhancing the state’s reputation as a hub for innovation. A higher score can also signal to educational institutions and corporations that the region is fertile ground for future-forward projects, potentially spurring collaborative ventures and further inflows of talent and funding.
Conversely, a lower score may indicate stagnation in innovative activity or barriers that hinder patent development, such as reduced funding, lack of technical workforce, or policy obstacles. For instance, the low in November 2024 could suggest seasonal downturns or lagging institutional output. Persistent low scores could deter investment, slow the commercialization of new technologies, and weaken the state’s competitive position nationally. Maintaining or improving upon May’s figure should remain a strategic priority for stakeholders aiming to bolster Georgia’s innovation ecosystem.
Discussion:
In May, 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 in contrast to the prior 12 months, which experienced an upward 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.
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