MICHIGAN INVENTIONINDEX | OCTOBER 2025
October 2025: 1.46% (C+ grade)
Michigan inventionINDEX October 2025: 1.46% (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).
Michigan inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| October 2025 | 1.46% |
| Sep 25 | 1.33% |
| Aug 25 | 1.30% |
| Jul 25 | 2.01% |
| Jun 25 | 1.26% |
| May 25 | 1.33% |
| Apr 25 | 1.68% |
| Mar 25 | 0.80% |
| Feb 25 | 1.20% |
| Jan 25 | 1.01% |
| Dec 24 | 1.47% |
| Nov 24 | 0.97% |
| Oct 24 | 2.97% |
The Michigan inventionINDEX for October 2025 stands at 1.46%, earning a C+ grade. This score indicates a positive sentiment, aligning with the general trend of the past year where the index has largely remained above the C grade threshold. While October’s performance is higher than the average of the preceding year, it slightly underperforms the upward trajectory observed within the current year. This suggests a period of stabilization after a previous downward trend, yet with room for further acceleration in innovation output.
A higher inventionINDEX grade, particularly above a C, signifies robust innovation output, which is crucial for economic resilience. States with consistently strong scores are better positioned to navigate economic fluctuations, such as those experienced during the post-pandemic era. This positive sentiment reflects a healthy environment for patent production and GDP growth, fostering investor confidence and potentially attracting new businesses and talent. Such an environment can lead to job creation, increased economic activity, and overall prosperity for the state.
Conversely, a lower inventionINDEX score, falling below the C grade, points to a negative outlook or sentiment regarding innovation. This can have several detrimental implications for the state’s economic health. A decline in innovation output may signal reduced research and development capabilities, potentially due to factors like company closures, workforce reductions, or a decrease in investment in new ideas. Over time, consistently low scores could lead to a less competitive economy, slower GDP growth, and a diminished capacity to recover from economic challenges.
Analyzing the historical data, the Michigan inventionINDEX has experienced significant fluctuations. For instance, October 2024 saw an impressive A+ grade with a 2.97% score, while July 2023 registered an F grade with a -0.11% score, highlighting periods of both strong performance and considerable downturns. Understanding these historical trends and the factors influencing them is vital for strategic planning and implementing policies that encourage sustained innovation and mitigate the impact of periods with lower inventionINDEX scores.
Discussion:
In October, the Michigan inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a 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 Michigan office provides R&D tax credit consulting and advisory services to Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Dearborn, Livonia, Troy, Westland, Farmington Hills, Kalamazoo, Wyoming, Rochester Hills, Southfield, Taylor, Pontiac, St Clair Shores and Royal Oak.
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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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