MASSACHUSETTS INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.15% (B- grade)

Massachusetts inventionINDEX November 2025: 1.15% (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 Scores – Last 12 months

The November 2025 Massachusetts inventionINDEX score of 1.15% marks a modest recovery from the previous month’s low of 1.11%, shifting the rating from a C+ back into the B- territory. While this uptick suggests a stabilizing environment for regional innovation, the current figure remains notably soft compared to the performance seen earlier in the year, such as the 1.35% recorded in July. This recent volatility follows a pattern of periodic fluctuations, yet the slight increase in the final quarter of 2025 provides a glimmer of momentum as the year concludes.

When examining the historical data over the last sixty months, the current score of 1.15% sits approximately 16 basis points below the five-year average of 1.31%. The index has experienced significant peaks, most notably in October 2023 when it reached a high of 1.92%, and sustained periods of excellence throughout 2021 and 2022 where A+ ratings were frequent. Compared to these historical milestones, the current metrics indicate that the Massachusetts inventive ecosystem is currently operating in a cooling phase, far removed from the high-growth periods that characterized the mid-2020s.

A higher inventionINDEX grade, particularly those in the A range, serves as a powerful signal of a thriving and efficient innovation economy. When the score climbs toward the levels seen in late 2023 or the 1.45% peak in December 2024, it typically reflects a high density of patent filings, increased venture capital throughput, and a robust pipeline of intellectual property. Such high marks instill confidence in institutional investors and attract top-tier global talent, reinforcing the state’s position as a premier hub for technological advancement and ensuring long-term economic resilience through high-value job creation.

Conversely, a lower score or a sustained period in the B- to C+ range carries negative implications for the region’s competitive edge. A score like the 1.07% seen in September 2023 or the current sub-average performance suggests a period of stagnation or increased friction in the invention process. If these lower ratings persist, they can indicate a waning of entrepreneurial spirit or a bottleneck in the transition from research to commercial application. This downward pressure risks a loss of momentum to rival tech corridors, making it harder for local startups to secure the necessary backing to scale their operations in an increasingly globalized market.

Discussion:

In November, the Massachusetts inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed 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.

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.