INDIANA INVENTION INDEX – MARCH 2025
The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth.
Indiana Invention Index March 2025: 1.23% (B- grade)
Indiana Invention Index over the last year:
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).
Discussion:
In March, the Indiana Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.
Invention Index Scores:
| Month | Invention Index Score |
|---|---|
| September 2024 | 1.31% (B grade) |
| October 2024 | 1.50% (A- grade) |
| November 2024 | 1.26% (B- grade) |
| December 2024 | 1.49% (A- grade) |
| January 2025 | 1.28% (B- grade) |
| February 2025 | 1.25% (B- grade) |
Analysis:
- Trends in the Scores Over Time:
The Indiana Invention Index has shown a slight fluctuation over the past six months, with scores ranging from 1.25% to 1.50%. This indicates a relatively stable innovation output relative to economic growth in the state.
- Possible Reasons Behind Increases or Decreases:
The minor variations in the Invention Index scores could be attributed to changes in patent production or GDP growth rates. Factors such as shifts in industry focus, research and development activities, or economic conditions may influence these metrics.
- Implications of Higher vs. Lower Scores for Innovation and the Local Economy:
Higher Invention Index scores generally suggest a robust innovation environment, which can lead to economic growth, job creation, and technological advancement. Conversely, lower scores may indicate a decline in innovation activity, potentially affecting the state’s competitiveness and long-term economic health.
- Any Standout Anomalies or Shifts Worth Noting:
There are no significant anomalies or abrupt shifts in the Invention Index scores over the past six months. The consistent range of scores suggests a stable innovation landscape in Indiana during this period.
Learn more about the Invention Index here.
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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
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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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