June 2025: 1.39% (B- grade)

Minnesota inventionINDEX June 2025: 1.39% (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).

The Minnesota inventionINDEX score for June 2025 stands at 1.39%, marking a noticeable decline from May’s 1.74% and April’s identical figure of 1.74%. This downward trend comes after a relatively steady climb earlier in the year, with January peaking at 1.79%. Although the current figure is not the lowest recorded in the past 12 months, it does represent a moderate drop in innovation activity when compared to the recent spring highs. This suggests a cooling period following a relatively active winter and early spring phase.

Looking further back, Minnesota’s December 2024 score reached 2.15%, the highest in the 13-month span. October also showed elevated activity at 2.01%. These peak months likely reflect periods of intensified patent filings, tech R&D cycles, or seasonal factors such as university spinouts or end-of-year corporate innovation pushes. The current June 2025 figure is significantly below those benchmarks, signaling a need to assess whether this is a temporary lull or a signal of longer-term stagnation.

A higher inventionINDEX score often correlates with a stronger local innovation ecosystem. It implies more patent activity, possibly due to a favorable policy environment, investment in R&D, or academic-industry collaboration. For Minnesota, months like December 2024 and January 2025 likely reflect such underlying strengths. These periods can attract venture capital, support job creation in STEM sectors, and enhance the state’s reputation as a hub for technology and invention.

On the other hand, lower scores, like June’s 1.39% or March’s 1.18%, may raise concerns about declining momentum. While short-term dips are common, sustained declines could suggest underinvestment in research, barriers to commercialization, or regulatory bottlenecks. Policymakers and innovation stakeholders may need to revisit support structures and funding pipelines to ensure that Minnesota remains competitive within the broader national innovation landscape.

Discussion:

In June, the Minnesota 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 Minnesota office provides R&D tax credit consulting and advisory services to Minneapolis, Saint Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, Maple Grove, Woodbury, and St Cloud.

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:

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