INDIANA INVENTIONINDEX | MAY 2025
May 2025: 1.20% (B- grade)
Indiana inventionINDEX May 2025: 1.20% (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).
The Indiana inventionINDEX Score for May 2025 stands at 1.20%, reflecting a slight decrease from April’s 1.49% and a marginal dip compared to the same month last year, which recorded a 1.05%. While this score does not represent a historical peak, it remains within a healthy range, especially when contextualized against fluctuations observed over the past 12 months. The general trend suggests a level of consistency, though with mild volatility from month to month. May’s dip appears more like a return to the index’s average rather than a sign of significant decline, particularly given the broader historical range from 1.05% to 1.49%.
Higher inventionINDEX Scores are generally seen as a sign of increased innovation activity, greater patent filings, and heightened economic engagement from inventors and institutions within the state. For Indiana, the elevated scores in April 2025 and December 2024, both at 1.49%, likely point to successful quarters where R&D outputs or commercial patenting volumes surged. These spikes may coincide with academic-year endpoints, seasonal funding cycles, or specific tech sector booms. High scores can foster investor confidence, attract R&D partnerships, and position the state as a national leader in innovation-driven growth.
However, lower scores, such as those in May 2024 (1.05%) and August 2024 (1.16%), underscore periods when inventive output may have slowed. This could stem from a variety of factors, such as economic headwinds, delayed grant cycles, or dips in patent submissions. While short-term declines do not necessarily spell long-term trouble, a persistent downward trend could indicate deeper structural issues in the innovation pipeline, including reduced STEM workforce capacity or diminishing commercialization rates of academic research.
Overall, the past year illustrates a relatively stable inventionINDEX pattern for Indiana, hovering mostly in the 1.2–1.4% range with occasional deviations. This consistency suggests resilience and steady innovation momentum. Maintaining or improving these scores over time will depend on strategic efforts to support startups, fund research initiatives, and streamline the patenting process. Close monitoring of these monthly shifts offers valuable insight into how well the state is leveraging its intellectual capital for economic advancement.
Discussion:
In May, the Indiana inventionINDEX 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 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:
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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.
