MASSACHUSETTS INVENTIONINDEX | JUNE 2025

June 2025: 1.11% (C+ grade)

Massachusetts inventionINDEX June 2025: 1.11% (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).

Over the past twelve months, Massachusetts has maintained a relatively consistent performance on the inventionINDEX, with its most recent score for June 2025 recorded at 1.11%. This marks a slight decrease from May’s 1.19% and a more noticeable decline from the high point of 1.45% observed in December 2024. Despite these fluctuations, the state’s innovation activity has remained within a narrow band, reflecting stable inventive output, although not demonstrating any sustained upward momentum in recent months.

When compared to its historical data, the June 2025 score is among the lower figures in the twelve-month span, only slightly above November 2024’s 1.10%. This could suggest a short-term dip in patent activity, R&D investments, or commercialization efforts. Such a decline, if it continues, could signal caution for stakeholders relying on innovation-driven growth. Lower scores might reflect challenges in policy incentives, capital availability, or a slowdown in research funding, all of which can affect the pace at which new ideas are developed and brought to market.

However, Massachusetts’ earlier performance, particularly from December 2024 through January 2025, indicates that the state is capable of strong inventive output. The 1.45% score in December and 1.32% in January stand as evidence of Massachusetts’ potential to lead in innovation, likely driven by its dense concentration of universities, biotech firms, and technology incubators. Higher scores typically correlate with increased intellectual property generation, job creation in high-tech sectors, and improved competitiveness, which are critical for long-term economic development.

The recent decline, while not drastic, emphasizes the importance of vigilance. Policymakers, investors, and R&D leaders should assess whether this drop is seasonal, cyclical, or structural. Continuous support for research institutions, innovation grants, and startup ecosystems will be essential to reversing this trend. Maintaining a higher inventionINDEX score is not only a measure of creative output but also a signal of economic resilience and a commitment to shaping the future through technology.

Discussion:

In June, 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 similar 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 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 if you would like to learn more about R&D tax credit opportunities.

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