MASSACHUSETTS INVENTIONINDEX | APRIL 2025

April 2025: 1.21% (B grade)

Massachusetts inventionINDEX April 2025: 1.21% (B 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).

Massachusetts inventionINDEX: Six-Month Comparative Analysis

The inventionINDEX for Massachusetts over the past six months reveals moderate fluctuations, with notable gains and some declines. April 2025 recorded a score of 1.21%, a slight rise from March 2025’s 1.18%, indicating a marginal improvement in inventive activity. However, February and January saw varying dynamics, with January peaking at 1.32% before a dip to 1.14% in February. The highest point within this period was December 2024, posting a robust 1.45%, while November marked the lowest at 1.10%.

A higher inventionINDEX score generally reflects an ecosystem conducive to innovation. December’s 1.45% suggests increased patent filings, research outputs, or startup activity, likely driven by robust funding, academic collaboration, or industry demand. Such a rise can correlate with economic stimulation, job creation in high-tech sectors, and increased competitiveness for Massachusetts in national innovation rankings.

Conversely, a dip, like the one observed in February or November, may signal temporary stagnation. This could stem from reduced R&D investment, slower academic output, or policy uncertainty. Prolonged downturns may discourage investor confidence and reduce the pipeline of technological advancement. While monthly fluctuations are common, maintaining consistency is key for long-term innovation health.

Discussion:

In April, the Massachusetts 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 Massachusetts office provides R&D tax credit consulting and advisory services to Boston, Worcester, Springfield, Lowell, Cambridge, New Bedford, Brockton, Quincy, Lynn and Fall River.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.