INDIANA INVENTIONINDEX | OCTOBER 2025
October 2025: 1.18% (C+ grade)
Indiana inventionINDEX October 2025: 1.18% (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).
Indiana inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| October 2025 | 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% |
| Oct 24 | 1.37% |
The Indiana inventionINDEX for October 2025 registered a score of 1.18%, earning a C+ rating. This places the current performance below several months in the recent past, including the previous month of September 2025, which saw a B+ rating with a score of 1.39%. Looking back over the last year, the October 2025 figure is also lower than the 1.37% (B rating) recorded in October 2024, indicating a slight decline year-over-year. While still maintaining a positive sentiment (anything over a C grade), this score suggests a need for closer examination compared to the more robust periods of innovation seen in earlier months.
Historically, higher inventionINDEX scores and corresponding grades, such as the A+ ratings achieved in November 2023 (2.26%) and March 2021 (1.77%), signify periods of strong innovation output. These elevated scores reflect a healthy economic environment where GDP growth is effectively matched or exceeded by patent production growth. Such positive trends are often associated with increased investment in research and development, a vibrant entrepreneurial ecosystem, and a strong capacity for economic recovery and sustained growth. A higher grade generally indicates a state’s robust ability to foster and capitalize on new ideas, which is a critical driver for long-term prosperity.
Conversely, lower inventionINDEX scores, particularly those dipping to a C grade or below, carry negative implications. For instance, May 2024 and March 2023 both recorded C grades with scores of 1.05% and 1.08% respectively. These lower ratings suggest a deceleration in innovation output relative to economic growth. Such a trend could signal reduced investment in R\&D, a less dynamic innovation landscape, or potential challenges in translating new ideas into patentable inventions. A sustained period of lower scores might indicate underlying economic vulnerabilities, potentially hindering a state’s ability to adapt to new market demands or recover from economic downturns.
Analyzing the 60-month historical data reveals fluctuations, with peaks and troughs in Indiana’s innovation performance. While October 2025’s C+ rating is positive, it is important to consider it within the broader context of past performance. Sustaining and improving upon this score will likely require continued strategic focus on fostering an environment conducive to innovation and intellectual property generation. Monitoring these trends closely allows stakeholders to identify periods of strength and areas that may require intervention to ensure Indiana’s continued economic resilience and innovative capacity.
Discussion:
In October, 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 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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