IOWA INVENTIONINDEX | OCTOBER 2025
October 2025: 1.54% (A+ grade)
Iowa inventionINDEX October 2025: 1.54% (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 |
| October 2025 | 1.54% |
| Sep 25 | 1.48% |
| Aug 25 | 1.15% |
| Jul 25 | 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% |
The Iowa inventionINDEX for October 2025, at 1.54% with an A+ rating, demonstrates a consistently strong performance over the past five years. This score, while slightly higher than the previous year’s average, indicates a robust and innovative economic environment within the state. A higher inventionINDEX grade, particularly an A+, signifies a healthy balance between GDP growth and patent production, suggesting that Iowa’s economy is not only expanding but also fostering significant intellectual property development. This positive sentiment can attract further investment, stimulate job creation in high-tech sectors, and enhance the state’s overall economic resilience.
Comparing the current October 2025 score to historical data reveals a generally upward trend in the inventionINDEX over the past 60 months, despite some fluctuations. For instance, while October 2025’s 1.54% is strong, April 2025 saw a peak of 1.96%, also an A+. Similarly, October 2023 and January 2023 also achieved A+ ratings with scores of 1.43% and 1.60% respectively. This sustained period of high performance, with numerous months achieving A or A+ ratings, underscores Iowa’s commitment to innovation and its ability to generate new ideas and technologies. Such consistent positive grades are crucial for long-term economic stability and growth, signaling to businesses and investors that Iowa is a fertile ground for innovation-driven ventures.
Conversely, periods of lower inventionINDEX scores and grades, such as the C- ratings in October 2024 (0.99%) and March 2023 (0.98%), or the D+ in July 2022 (0.88%), indicate a potential slowdown in innovation output relative to economic growth. A lower grade suggests that the rate of patent production may not be keeping pace with GDP expansion, which could signal underlying challenges in research and development, or a less dynamic innovative ecosystem. These periods might reflect economic headwinds, reduced investment in R\&D, or a lag in the commercialization of new ideas. The implications of a sustained lower score could include a less competitive economy, reduced attractiveness for innovative businesses, and a slower recovery from economic downturns.
In conclusion, the Iowa inventionINDEX serves as a vital barometer for the state’s innovation health. The prevalence of high grades in recent months, including the current A+ in October 2025, highlights a thriving environment for intellectual property and economic advancement. Maintaining and improving upon these strong scores will be essential for Iowa’s continued prosperity, ensuring that the state remains a leader in innovation and is well-positioned to navigate future economic landscapes. The historical data provides valuable insights into these trends, allowing for a nuanced understanding of Iowa’s innovation trajectory.
Discussion:
In October, 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 similar to the prior 12 months, which experienced a slight upward 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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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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