MASSACHUSETTS INVENTIONINDEX | MAY 2025
May 2025: 1.19% (B grade)
Massachusetts inventionINDEX May 2025: 1.19% (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).
Over the past twelve months, the Massachusetts inventionINDEX has shown moderate fluctuations, reflecting subtle yet meaningful changes in the region’s innovation landscape. The most recent score for May 2025 stands at 1.19%, slightly lower than the April 2025 figure of 1.21% and noticeably down from the recent peak in December 2024, which reached 1.45%. While the current level is not alarming, the score has declined in four of the last five months, suggesting a potential deceleration in inventive activity or shifts in contributing sectors such as biotechnology, advanced manufacturing, or software development.
Despite the slight month-over-month dip, it is important to recognize that the May 2025 score still falls within a relatively strong historical range. For context, the lowest point over the past year was recorded in November 2024 at 1.10%, and May’s reading is comfortably above that trough. The overall trend reflects a resilient baseline for innovation in Massachusetts, supported by the state’s robust R&D ecosystem, research universities, and access to venture capital. A score hovering above 1.15% typically correlates with steady patent filings, a healthy startup pipeline, and active technology transfer, all key indicators of economic dynamism and long-term competitiveness.
A higher inventionINDEX score is generally seen as a sign of economic vitality. It points to a thriving environment for new ideas, product development, and intellectual property creation, which in turn attracts investment and skilled labor. Sectors tied to high invention scores often experience stronger job growth, increased commercialization opportunities, and improved national and global standing. For Massachusetts, maintaining scores in the upper percentile range reinforces its status as a national leader in innovation-driven industries.
On the other hand, a downward trend—if sustained—can present risks. A lower score may indicate reduced patent activity, funding bottlenecks, or slower academic-to-commercial transitions. For policymakers and industry leaders, a declining inventionINDEX serves as an early warning that innovation inputs such as research grants, education initiatives, or infrastructure support might require reinforcement. Maintaining and growing this score is not only about tracking progress but also ensuring that Massachusetts continues to foster an environment where innovation is incentivized and scalable.
Discussion:
In May, 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 if you would like to learn more about R&D tax credit opportunities.
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