INDIANA INVENTIONINDEX | APRIL 2025

April 2025: 1.49% (A- grade)

Indiana inventionINDEX April 2025: 1.49% (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 inventionINDEX score for Indiana has shown a steady fluctuation over the last 12 months, with recent months demonstrating a slight improvement in innovation activity. April 2025’s score of 1.49% marks a notable increase compared to the previous months, such as March 2025 at 1.23% and February 2025 at 1.25%. The upward trend in the last few months suggests a positive shift in the region’s overall innovation environment. Indiana’s continuous growth, peaking at 1.49% in April 2025, could indicate a strengthening of resources, investments, or innovation-driven initiatives that are fostering progress.

A higher score like April’s 1.49% can have positive implications. It reflects greater innovation activity, which can result in economic growth, job creation, and enhanced competitiveness. Additionally, a higher score could attract more investments and talent to the state, positioning Indiana as a favorable hub for tech and research industries. This increase can also enhance the region’s ability to address global challenges, with more breakthrough technologies emerging from local efforts.

Conversely, a lower score, such as May 2024’s 1.05%, could imply a slowdown in innovation. This could stem from reduced funding, less collaboration between academic institutions and industries, or a lack of government support for research initiatives. A decline in the inventionINDEX score could potentially hinder Indiana’s competitiveness on both a national and global scale, limiting growth in technology and entrepreneurship sectors.

In conclusion, the recent increase in Indiana’s inventionINDEX score demonstrates promising outcomes for the state’s innovation ecosystem. Continued attention to fostering innovation is crucial to maintaining and building upon this growth, while a drop in score would need to be addressed to avoid stagnation in the state’s development.

Discussion:

In April, the Indiana 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 Indiana office provides R&D tax credit consulting and advisory services to Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Hammond, Gary and Lafayette.

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.