ILLINOIS INVENTIONINDEX | MAY 2025
May 2025: 1.34% (B grade)
Illinois inventionINDEX May 2025: 1.34% (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).
Over the past 12 months, the inventionINDEX score for Illinois has shown moderate fluctuations, with the latest reading for May 2025 registering at 1.34%. This represents a slight dip from April 2025’s 1.69%—the highest point in the last five months—but still marks an improvement over several previous months such as March (1.05%) and February (1.19%). This latest figure positions Illinois on a cautiously optimistic trajectory, suggesting continued resilience in innovation activity despite economic and seasonal variability.
When compared to the same period a year ago, the progress is more evident. May 2024’s score stood at 1.11%, making May 2025’s 1.34% a notable year-over-year increase. This improvement signals a stronger pipeline of inventive activity, possibly driven by enhanced R&D funding, academic-commercial partnerships, or favorable policy changes encouraging innovation. Sustained growth in this index generally correlates with increased patent filings, higher commercialization potential, and broader contributions to the regional economy.
A higher inventionINDEX score tends to reflect positively on the state’s innovation ecosystem. It can attract greater venture capital interest, enhance university-industry collaborations, and improve the reputation of Illinois as a hub for technological advancement. Moreover, such a trend can foster job creation in high-tech sectors and stimulate further investment in research infrastructure. Policymakers and business leaders often use this index as a signal of momentum, which can support decision-making around economic development initiatives.
Conversely, if the score begins to decline—as it did in August 2024 (0.89%)—it may point to bottlenecks in innovation, such as reduced funding, talent shortages, or a lag in translating research into market-ready solutions. Persistent declines can hinder competitiveness, disincentivize external investment, and result in missed opportunities for economic expansion. Therefore, maintaining and enhancing the inventionINDEX should remain a priority for stakeholders invested in Illinois’ long-term growth and innovation strategy.
Discussion:
In May, the Illinois inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed 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 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.
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