IOWA INVENTIONINDEX | APRIL 2025
April 2025: 1.96% (A+ grade)
Iowa inventionINDEX April 2025: 1.96% (A+ 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 Iowa inventionINDEX Score has seen fluctuations over the past year, reflecting varying trends in innovation and development. From April 2024 to April 2025, the score has ranged from 0.99% to 1.96%, with April 2025 marking the highest score in the last 12 months. This improvement in April 2025 suggests a positive shift in Iowa’s innovation activities, potentially due to increased investment in research, technological advancements, or new entrepreneurial ventures.
A higher inventionINDEX score, such as the 1.96% observed in April 2025, often signifies a stronger innovation ecosystem. This can be beneficial for the state’s economy, attracting investors, fostering job creation, and positioning Iowa as a hub for emerging technologies. The score increase indicates that Iowa may be capitalizing on its innovation potential, with a possible rise in patent activity, new product development, and technological collaboration. It could also suggest a more favorable business environment that encourages risk-taking and new ideas.
On the other hand, a lower inventionINDEX score, as seen in October 2024 (0.99%), could reflect challenges in the innovation landscape. This drop may indicate stagnation, reduced research funding, or fewer new technological developments. A lower score can be a red flag for potential economic stagnation, reduced investment, or diminished global competitiveness. It could also signal a lack of necessary infrastructure or policies to support new inventions and ideas.
The following table highlights the scores from the last six months:
| Month | inventionINDEX Score |
|---|---|
| April 2025 | 1.96% |
| March 2025 | 1.24% |
| February 2025 | 1.28% |
| January 2025 | 1.10% |
| December 2024 | 1.27% |
| November 2024 | 1.19% |
In conclusion, the recent uptick in the inventionINDEX score is a promising indicator of Iowa’s growing innovation, though further monitoring is needed to ensure sustained growth.
Discussion:
In April, the Iowa inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast 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 Iowa office provides R&D tax credit consulting and advisory services to Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, West Des Moines, Ames, Council Bluffs and Dubuque.
Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, if you would like to learn more about R&D tax credit opportunities.
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