LOUISIANA INVENTIONINDEX | MAY 2025
May 2025: 1.03% (C grade)
Louisiana inventionINDEX May 2025: 1.03% (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).
The latest inventionINDEX Score for May 2025 is 1.03%, representing a modest decline from April’s 1.29% and March’s 1.24%. This drop may suggest a temporary cooling in innovation activity across Louisiana, particularly when viewed in light of the steady performance observed in the first quarter of 2025. February marked a recent high of 1.34%, showing momentum that has since softened. While not dramatic, the decreasing trend over the last two months may warrant attention from stakeholders monitoring the region’s innovation climate.
Comparing the current figure to the same period last year provides helpful context. In May 2024, the inventionINDEX was 0.92%, meaning the May 2025 score of 1.03% still reflects year-over-year growth. This suggests a broader upward trajectory, even with short-term fluctuations. Importantly, the June and July 2024 scores were significantly higher at 1.45%, followed by a drop in late summer and early fall. The October 2024 spike to 2.40% stands out as an outlier and likely reflects a unique, time-bound event or policy effect, rather than a sustainable trend.
A higher inventionINDEX Score generally signals an encouraging environment for innovation. It typically correlates with increased research and development activity, higher patent application rates, and greater interest from venture capital and industry collaborators. For Louisiana, a sustained score above 1.00% can enhance its appeal to tech entrepreneurs and institutional investors seeking dynamic ecosystems. It may also influence policy decisions and public investment into innovation hubs, incubators, and academic partnerships.
Conversely, lower or declining scores may indicate underutilized innovation capacity or weakening support for R&D. Persistent decreases could lead to reduced funding interest, slower economic diversification, and diminished competitiveness relative to other regions. For May 2025, although the score remains above the previous year’s level, the downward trend from earlier in the year should be monitored closely. Understanding the root causes—whether related to industry cycles, policy shifts, or external economic pressures—will be key to ensuring continued innovation growth in Louisiana.
Discussion:
In May, the Louisiana inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an 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 Louisiana office provides R&D tax credit consulting and advisory services to New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles, Kenner, Bossier City, Monroe, Alexandria and Houma.
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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