IOWA INVENTIONINDEX | MAY 2025
May 2025: 1.50% (A+ grade)
Iowa inventionINDEX May 2025: 1.50% (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 inventionINDEX Score for Iowa in May 2025 stands at 1.50%, marking a notable increase from the previous month’s 1.96%. While this reflects a slight dip, the current figure remains above most of the preceding 12 months, with only April 2025 and July 2024 surpassing it. From a broader perspective, the score is part of a general upward trend observed since October 2024, when the index bottomed out at 0.99%. This rising trajectory signals a strengthening innovation climate in Iowa, suggesting a rebound in patent activity, research output, or entrepreneurial development.
A higher inventionINDEX Score typically correlates with a healthier innovation pipeline. For Iowa, this sustained growth may point to increased investments in R&D, more robust university-industry partnerships, or improved policy frameworks fostering creativity and invention. Such momentum can enhance the state’s competitiveness, attract talent, and lead to commercialization opportunities that fuel job growth and regional economic resilience. The May 2025 figure, despite being slightly lower than April’s, reflects a strong continuation of these positive forces.
However, a high score must be sustained over multiple months to yield lasting impact. Temporary spikes, if not supported by underlying infrastructure and funding continuity, may not translate into real innovation gains. Conversely, a declining score—like the dip from April to May—could indicate potential softening in these support mechanisms. If the downward movement continues, it could suggest a slowdown in patent filings or a loss of momentum in key sectors, possibly driven by economic uncertainties, reduced investment, or policy shifts.
Looking at the broader historical context, the last 12 months show a fluctuating but generally improving landscape. The lowest points between August and October 2024 appear to have been outliers in a recovering environment. The consistency of scores above 1.10% in the first five months of 2025 reflects increasing stability. For Iowa, sustaining this trend and pushing beyond the 1.50% range could position it more favorably compared to national benchmarks and foster greater confidence in its innovation ecosystem.
Discussion:
In May, the Iowa inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed 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 if you would like to learn more about R&D tax credit opportunities.
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