INDIANA INVENTIONINDEX | DECEMBER 2025
December 2025: 1.29% (B grade)
Indiana inventionINDEX December 2025: 1.29% (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).
Indiana inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| December 2025 | 1.29% |
| Nov 25 | 1.21% |
| Oct 25 | 1.18% |
| Sep 25 | 1.39% |
| Aug 25 | 1.16% |
| Jul 25 | 1.53% |
| Jun 25 | 1.10% |
| May 25 | 1.20% |
| Apr 25 | 1.49% |
| Mar 25 | 1.23% |
| Feb 25 | 1.25% |
| Jan 25 | 1.28% |
| Dec 24 | 1.49% |
The Indiana inventionINDEX concluded 2025 at a score of 1.29 percent, earning a solid B rating. This performance represents a measured recovery from the mid-year lows, particularly the 1.10 percent recorded in June. While the year ended on a positive trajectory with three consecutive months of growth, the final figure remains slightly below the five-year historical average of 1.38 percent. Compared to the start of the 60-month tracking period in December 2020, which boasted a 1.60 percent score and an A rating, the current metrics suggest a state of stabilization rather than the aggressive expansion seen in the earlier years of the decade.
Evaluating the broader historical data reveals significant fluctuations in Indiana’s innovation landscape over the last five years. The index reached its zenith in November 2023 with a remarkable score of 2.26 percent and an A+ rating, a peak that remains unmatched in the current data set. Conversely, 2024 and 2025 have seen more frequent dips into the C-range ratings, with May 2024 hitting a five-year low of 1.05 percent. These variations highlight a period of transition where the state has shifted from the high-growth environment of 2021 and 2022 into a more moderate and volatile phase of economic and creative output.
Achieving a higher grade, such as the A+ ratings seen in early 2021 and late 2023, yields substantial benefits for the regional ecosystem. These elevated scores typically correlate with increased patent filings, higher levels of research and development investment, and a more robust talent pipeline. A top-tier rating serves as a beacon for venture capital and high-tech industries, signaling that the environment is ripe for commercializing new ideas. When the index sits comfortably in the A-range, it suggests a synergistic relationship between academia and industry that fosters sustainable economic growth and job creation in specialized sectors.
On the other hand, a decline in the score toward the C-range carries negative implications for the state’s competitive position. Lower scores, like those observed periodically over the last twenty-four months, may indicate a stagnation in intellectual property generation or a slowdown in entrepreneurial activity. Such a downturn can lead to a reduced capacity for attracting federal grants and private partnerships, potentially resulting in a brain drain as top-tier talent seeks more active innovation hubs elsewhere. Maintaining the score above these lower thresholds is essential to ensure that Indiana remains a leader in the national innovation economy and avoids the long-term risks associated with industrial inertia.
Discussion:
In December, the Indiana 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 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 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 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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
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