June 2025: 1.10% (C+ grade)

Indiana inventionINDEX June 2025: 1.10% (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).

The June 2025 inventionINDEX score for Indiana stands at 1.10%, marking a noticeable decline from May’s 1.20% and a significant drop compared to April’s peak of 1.49%. This current figure is not only the lowest for 2025 thus far, but also one of the lowest recorded in the past 12 months. It suggests a slowdown in patent activity or innovation-related filings for the state, possibly reflecting seasonal trends, resource constraints, or shifts in industrial or academic R&D output.

When compared to the historical data from July 2024 to June 2025, the current score trails behind most months. Last July, the score was 1.47%, and in October 2024, it reached 1.37%. Even the early months of 2025-January (1.28%) and February (1.25%)-were considerably stronger. This downtrend raises concerns about Indiana’s short-term momentum in innovation and could be interpreted as a signal that fewer breakthrough ideas or technologies are emerging or being protected via the patent system during this period.

A higher inventionINDEX score often correlates with a vibrant innovation ecosystem. It can indicate robust R&D investment, successful commercialization of new technologies, and a healthy collaboration between academia, startups, and established industries. For Indiana, a higher score would support job creation, attract venture capital, and help position the state as a leader in tech and manufacturing innovation. It also strengthens its reputation in the national innovation landscape.

On the other hand, a declining score can imply reduced inventive activity or inefficiencies in translating research into intellectual property. If this trend continues, it could hinder Indiana’s ability to retain top STEM talent or compete for federal innovation funding. Policymakers and economic development leaders may need to examine whether structural or funding issues are impeding innovation pipelines, and determine how best to reinvigorate inventive efforts statewide.

Discussion:

In June, the Indiana 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 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.