INDIANA INVENTIONINDEX | NOVEMBER 2025
November 2025: 1.21% (B- grade)
Indiana inventionINDEX November 2025: 1.21% (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 |
| November 2025 | 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% |
| Nov 24 | 1.26% |
The Indiana inventionINDEX Score for November 2025 stands at 1.21%, corresponding to a rating of B-. This recent figure positions the state below the overall historical average of 1.38% for the last sixty months, indicating that current performance is weaker than the long-term trend. Furthermore, the score is also below the average of the last twelve months, which was 1.29%. This performance suggests that while the score maintains a generally acceptable rating, it has not yet recovered the momentum seen in more robust periods of the index’s history. Understanding this trend is essential for assessing the current health and trajectory of Indiana’s innovation landscape.
A high inventionINDEX Score, such as the historical peak of 2.26% (A+) recorded in November 2023, is indicative of a flourishing environment for innovation. Consistently achieving top-tier ratings like A or A+ signals to investors, entrepreneurs, and established businesses that the state possesses a dynamic and fertile ecosystem for ingenuity and growth. The positive outcomes of a higher grade include an enhanced national reputation, which can be critical for attracting venture capital, securing significant federal research grants, and recruiting top scientific and engineering talent. Ultimately, a strong, high-ranking score translates into a more diversified, resilient, and high-value economy for Indiana.
Conversely, a lower inventionINDEX Score carries inherent negative implications for the state’s long-term economic outlook. The historical low of 1.05% (C) observed in May 2024, as well as the repeated C+ and B- grades in the recent data, suggests a risk of innovation stagnation. Scores at the lower end of the scale can be interpreted as a warning sign that the state is losing its competitive edge to regions with more rapidly evolving inventive output. This decline can lead to challenges in retaining high-growth startups, a slowdown in technology commercialization, and a perception among stakeholders that the state’s economy lacks the necessary dynamism to compete in future technology-driven markets.
In summary, the current B- rating reflects a stable but moderately underperforming period for Indiana’s innovation capabilities relative to its historical potential. The analysis confirms a clear correlation between a higher inventionINDEX Score and the positive reinforcement of the state’s economic and intellectual capital. Moving forward, strategic policy and investment must be aligned to reverse the recent dip below the historical mean, with the goal of consistently achieving scores in the A- or higher range. This focused effort is necessary to secure and leverage the full spectrum of benefits associated with being a recognized leader in invention and entrepreneurship.
Discussion:
In November, 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.
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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.
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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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