ILLINOIS INVENTIONINDEX | APRIL 2025
April 2025: 1.69% (A grade)
Illinois inventionINDEX April 2025: 1.69% (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).
The Illinois inventionINDEX score for April 2025 shows a moderate increase to 1.69%, which is a notable improvement from March 2025’s score of 1.05%. Over the past six months, the scores have shown a fluctuating trend with some peaks and dips, reflecting varying levels of innovation activity. The score for October 2024 was the highest in the recent six-month period at 1.95%, indicating a significant surge in inventive activity during that month. In contrast, the lowest score occurred in August 2024 at 0.89%, suggesting a possible slowdown or reduced novelty in invention efforts.
A higher inventionINDEX score signifies a strong and active innovation ecosystem, suggesting that Illinois is fostering an environment conducive to technological advancement, business growth, and competitiveness. The recent uptick in April 2025 could indicate increasing investment in research and development, more patents being filed, or greater entrepreneurial activity in the state. Such positive outcomes can attract more businesses, investors, and talent to Illinois, contributing to its economic growth and technological leadership.
On the other hand, a lower score, as seen in August 2024, suggests that there may be challenges in sustaining innovation. It could reflect a temporary slowdown in inventive activity, possibly due to economic factors, market uncertainties, or a lack of support for emerging industries. If the trend continues downward, Illinois might face risks of losing its competitive edge in technology and innovation, which could lead to slower economic development.
Overall, the six-month trend shows that while Illinois’ inventionINDEX is currently experiencing a positive uptick, sustained innovation efforts and support are necessary to maintain a strong score and further boost the state’s competitive position in the global market.
| Month | inventionINDEX Score |
|---|---|
| Apr 2025 | 1.69% |
| Mar 2025 | 1.05% |
| Feb 2025 | 1.19% |
| Jan 2025 | 1.33% |
| Dec 2024 | 1.52% |
| Nov 2024 | 1.10% |
Discussion:
In April, the Illinois inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar 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 Illinois office provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.
Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.
