ILLINOIS INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.39% (B grade)

Illinois inventionINDEX September 2025: 1.39% (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).

Illinois inventionINDEX Scores – Last 12 months

The Illinois inventionINDEX for September 2025 stands at 1.39%, earning a B grade. This score indicates a positive sentiment, notably higher than the previous year’s average and demonstrating an upward movement against a general downward trend observed throughout the year. Comparing this to prior months, such as October 2023’s peak of 3.00% (A+ grade) or the low of July 2023 at 0.43% (F grade), highlights the dynamic nature of the index. The current B grade suggests a healthy innovation output, aligning with periods of economic stability and growth in patent production.

A higher inventionINDEX score, particularly one resulting in a B grade or above, signifies robust innovation within the state. This positive sentiment reflects a strong correlation between GDP growth and patent production, indicating a thriving environment for research and development. Such an outcome can lead to numerous economic benefits, including increased investment, job creation, and enhanced competitiveness. Sustained periods of high scores can also foster a culture of innovation, attracting talent and further stimulating economic recovery and resilience against potential downturns.

Conversely, a lower inventionINDEX score, particularly those falling into the C- or F grades, carries significant implications. For instance, the F grade in July 2023 at 0.43% suggests a period where patent production growth did not keep pace with GDP growth, or even declined. Such a scenario can point to a slowdown in innovation, potentially due to economic challenges, reduced R\&D investment, or other factors impacting the state’s inventive capacity. These lower scores can signal a negative outlook, potentially leading to decreased economic activity, a less competitive market, and a slower recovery from economic incidents.

Observing trends over time, the historical data reveals fluctuations that underscore the importance of continuous monitoring. While September 2025 shows a positive shift, the broader 60-month view indicates periods of both strong performance and significant dips. Understanding these patterns allows for a more informed perspective on Illinois’s economic health and its capacity for innovation. The inventionINDEX serves as a valuable metric for assessing these trends and informing strategies aimed at fostering a consistently strong and innovative economic landscape.

Discussion:

In September, the Illinois 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 considerable 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.