IOWA INVENTIONINDEX | JULY 2025
July 2025: 1.71% (A+ grade)
Iowa inventionINDEX July 2025: 1.71% (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).
Iowa inventionINDEX Scores – Last 12 months
Month | inventionINDEX Score |
July 2025 | 1.71% |
Jun 25 | 1.61% |
May 25 | 1.50% |
Apr 25 | 1.96% |
Mar 25 | 1.24% |
Feb 25 | 1.28% |
Jan 25 | 1.10% |
Dec 24 | 1.27% |
Nov 24 | 1.19% |
Oct 24 | 0.99% |
Sep 24 | 1.05% |
Aug 24 | 1.09% |
Jul 24 | 1.41% |
Based on the provided historical table for the last 60 months, the Iowa inventionINDEX shows significant fluctuation, yet it maintains a generally positive trajectory with numerous high-performing periods. The most recent score for July 2025 is an impressive 1.71%, earning an A+ rating. This places the current score among the highest recorded in the past five years, reflecting a strong period of innovative activity. This latest result surpasses the average score of the last 60 months, indicating a robust and healthy innovation ecosystem in the state.
A higher inventionINDEX score, such as the current A+ rating, is indicative of a flourishing environment for innovation and economic development. When the score is high, it often signals increased patent filings, significant research and development investments, and a surge in entrepreneurial activity. For instance, periods with A+ ratings, such as July 2025, August 2023 (1.63%), and December 2020 (1.55%), suggest a positive and optimistic outlook for Iowa’s economic future. These elevated scores can attract investment, foster job creation, and solidify the state’s reputation as a hub for new ideas and technological advancement.
Conversely, a lower inventionINDEX score and grade can signal potential challenges or a deceleration in innovative efforts. Scores in the ‘C’ and ‘D’ ranges, such as the 0.88% D+ rating in July 2022 or the 0.99% C- rating in October 2024, may suggest periods of slower innovation, reduced intellectual property creation, or a decrease in investment. Such downturns could indicate a need for policy adjustments, increased funding for research, or greater support for startups to re-energize the innovation landscape. Addressing the factors behind a lower score is crucial to prevent a prolonged negative impact on economic growth and competitiveness.
In conclusion, the Iowa inventionINDEX serves as a valuable barometer for the state’s innovation health, with the historical data illustrating a pattern of cyclical but ultimately resilient performance. The recent high scores provide a positive indication of current trends, while the periods of lower scores highlight the importance of continuous effort to support and nurture innovation. Maintaining a focus on policies and initiatives that foster a creative and supportive environment will be essential for Iowa to sustain its position as a leader in invention and economic progress.
Discussion:
In July, 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.
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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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