MINNESOTA INVENTIONINDEX | NOVEMBER 2025
November 2025: 1.60% (B grade)
Minnesota inventionINDEX November 2025: 1.60% (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).
Minnesota inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| November 2025 | 1.60% |
| Oct 25 | 1.46% |
| Sep 25 | 1.82% |
| Aug 25 | 1.55% |
| Jul 25 | 2.59% |
| Jun 25 | 1.39% |
| May 25 | 1.74% |
| Apr 25 | 1.74% |
| Mar 25 | 1.18% |
| Feb 25 | 1.50% |
| Jan 25 | 1.79% |
| Dec 24 | 2.15% |
| Nov 24 | 1.24% |
The Minnesota inventionINDEX for November 2025 stands at 1.60 percent, reflecting a steady “B” rating. This figure represents a measurable recovery from the previous month of October, where the index dipped to 1.46 percent and a “B-” rating. While the current score indicates a stabilizing trend as the year concludes, it remains lower than the significant peak of 2.59 percent achieved in July 2025. Over the last five years, the index has demonstrated a cyclical nature, yet the recent performance suggests that the regional innovation ecosystem is maintaining a solid baseline above the historical lows seen in early 2023.
When placed in a broader historical context, the current score of 1.60 percent aligns with the long-term average observed throughout this 60-month period. For instance, the score is remarkably similar to the 1.55 percent seen in August 2025 and January 2021. However, it sits well below the “A+” milestones reached in July 2025 and January 2024, when scores exceeded 2.30 percent. The data reveals that while Minnesota’s inventive output is not currently at its absolute ceiling, it has successfully avoided the stagnation periods of 2022 and 2023, where scores frequently languished in the 0.91 percent to 1.16 percent range.
The positive outcomes of achieving a higher grade, particularly those in the “A” category, are vital for the state’s economic health. A higher inventionINDEX score typically correlates with increased patent activity, robust research and development investments, and a surge in entrepreneurial confidence. When the rating reaches an “A” or “A+,” it signals to global investors that Minnesota is a primary hub for intellectual property and technological advancement. These peak periods often lead to the creation of high-value jobs and attract a specialized workforce, effectively strengthening the state’s competitive edge on a national scale.
Conversely, a decline in the score toward a “C” rating carries several negative implications for the region. Lower scores suggest a contraction in creative output or a delay in the commercialization of new ideas, which can lead to long-term economic inertia. If the index remains low for an extended duration, as seen during the spring of 2023, there is a risk of losing venture capital to more active markets. A lower grade serves as a warning that the infrastructure supporting innovation may require renewed support or policy intervention to prevent the state from falling behind its peers in the evolving global economy.
Discussion:
In November, 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:
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.
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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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