LOUISIANA INVENTIONINDEX | NOVEMBER 2025

November 2025: 0.87% (D+ grade)

Louisiana inventionINDEX November 2025: 0.87% (D+ 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).

Louisiana inventionINDEX Scores – Last 12 months

The current Louisiana inventionINDEX Score of 0.87% with a rating of D+ for November 2025 represents a significant retreat when compared to the five-year historical performance. The sixty-month mean score stands at approximately 1.37%, placing the latest reading nearly a full half-percentage point below the long-term average. Furthermore, the current score is among the lowest recorded in the data set, only marginally above the minimum of 0.82% seen in previous years. This sharp decline into the D-range, following a period where scores consistently achieved B or C+ ratings, reflects an immediate and concerning deceleration in innovation health and entrepreneurial activity within the state’s ecosystem.

An examination of the full historical data reveals considerable volatility, suggesting that the state’s innovation performance is subject to sharp cyclical swings. The data set exhibits a wide range, from the trough of 0.82% to the exceptional peak of 3.45% achieved in October 2023. This high-water mark demonstrates Louisiana’s capacity for periods of exceptional invention output. However, the long-term standard deviation suggests that these peaks are not consistently sustained. While the majority of scores typically cluster around the B and B+ ratings, confirming a solid baseline of performance, the current deviation underscores a need for strategic stability and measures designed to elevate the floor of the invention index.

A consistently higher inventionINDEX Score, particularly those reaching the A or A+ levels, carries substantive positive implications for the state’s economy. A strong score signals a robust, productive entrepreneurial environment, which acts as a powerful magnet for external venture capital and research investment. Higher grades are typically associated with increased patent filings, faster commercialization of research, and the creation of high-wage, specialized jobs. This positive cycle of innovation leads to accelerated economic growth, improved business formation rates, and enhanced global competitiveness for Louisiana, ultimately positioning the state as a leader in emerging technological sectors.

Conversely, the low score of 0.87% and the associated D+ rating suggest several negative implications that warrant immediate attention from stakeholders. A consistently low score can deter critical external investment, as it signals lagging innovation health and a potentially less fertile environment for high-growth startups and scale-ups. If the trend of lower scores persists, it may contribute to a “brain drain,” where talented researchers and experienced entrepreneurs seek more vibrant innovation ecosystems in other states. Reduced invention and patent activity can impede the necessary diversification of the state’s economy, slowing the pace of long-term economic resilience and prosperity.

Discussion:

In November, the Louisiana inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar 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.

Who We Are:

Swanson Reed is the largest Specialist R&D tax credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D tax credit consulting services to our clients. We have been exclusively providing R&D tax credit claim preparation and audit compliance solutions for over 30 years. 

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs.  For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.