ILLINOIS INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.14% (C+ grade)

Illinois inventionINDEX November 2025: 1.14% (C+ 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).

Illinois inventionINDEX Scores – Last 12 months

The most recent Illinois inventionINDEX Score of 1.14% for November 2025, which corresponds to a C+ rating, indicates a marginal improvement following a dip in performance. This score is slightly above the previous month’s C- rating of 0.98%, preventing a continuation of the declining trend observed after a stronger B rating of 1.39% in September. When viewed in the context of the last three months, the performance has been variable, fluctuating from a solid B range to a mid-C range. Crucially, the November score sits below the overall 1.42% mean for the past five years, suggesting that the current pace of inventive activity is subdued compared to its historical average.

Over the last 60 months, the inventionINDEX has demonstrated significant volatility, ranging from an exceptional high of 3.00% in October 2023 to a concerning low of 0.43% in July 2023, the latter resulting in an F rating. While the most frequent rating is C+, the data reveals a substantial number of high-performing months, with the top A+ grade appearing 13 times across the historical period. This pattern illustrates that while the state is capable of periods of intense, high-level innovation, the performance often reverts to a more moderate C range. The core challenge for Illinois is therefore not a lack of capacity for innovation, but rather in maintaining the momentum achieved during its peak periods to consistently elevate its foundational inventive performance above the long-term mean.

A consistently higher inventionINDEX score, particularly one in the A or B range (generally above ~1.30%), signals robust and accelerating innovation within the state’s economy. These higher grades are powerful indicators of a thriving ecosystem that effectively translates research and development into commercialized outputs and intellectual property. The positive outcomes include enhanced economic competitiveness, a stronger appeal to venture capital and corporate investment, and a greater capacity to attract and retain highly skilled talent. Sustained high scores help to reinforce the state’s reputation as a leader in key technological sectors, creating a beneficial cycle of growth, job creation, and future inventive activity.

Conversely, a persistent trend of lower scores, such as those in the C range and below, has clear negative implications for Illinois’s long-term economic outlook. Scores consistently under the historical mean may suggest a deceleration in the pace of innovation, potentially indicating stagnation in critical sectors or a failure to adapt to emerging market needs. A low inventionINDEX rating can erode investor confidence, making the state less attractive compared to higher-ranked regions, and may contribute to a “brain drain” as innovative enterprises and skilled professionals seek more dynamic environments. Addressing these lower scores is crucial for preventing a loss of competitive edge and ensuring that the state’s economy remains resilient and forward-looking.

Discussion:

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

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.