MINNESOTA INVENTIONINDEX | OCTOBER 2025
October 2025: 1.46% (B- grade)
Minnesota inventionINDEX October 2025: 1.46% (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 |
| October 2025 | 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% |
| Oct 24 | 2.01% |
The Minnesota inventionINDEX for October 2025 stands at 1.46%, earning a B- grade. This score indicates a positive sentiment, though it is lower than the previous month’s 1.82% (A-) and the average of the last twelve months. Over the past year, the index has shown some fluctuation, with a high of 2.59% (A+) in July 2025 and a low of 1.18% (C+) in March 2025. Comparing this to the preceding years, the current score is generally consistent with the range observed, albeit not reaching the peaks seen in earlier periods like July 2023 (2.33% A+) or March 2021 (2.42% A+).
A higher inventionINDEX score and a corresponding higher grade, such as an A or B, signify robust innovation output, which is crucial for economic resilience and growth. A strong performance suggests that the state is effectively fostering an environment where GDP growth is well-supported by patent production. This positive sentiment can attract investment, stimulate job creation, and enhance overall economic stability, particularly in recovering from economic incidents. States with consistently higher grades are better positioned to adapt to changing economic landscapes and drive future prosperity through technological advancement and new ideas.
Conversely, a lower inventionINDEX score, especially one falling below a C grade, points to a negative outlook or sentiment regarding innovation. This could imply a slowdown in patent production relative to GDP growth, potentially signaling underlying economic challenges. Such a trend might deter new businesses, hinder research and development efforts, and ultimately impact long-term economic recovery and competitiveness. Factors like company closures, reduced workforces, and limited R\&D capabilities, as mentioned in the document, can contribute to these lower scores, making it harder for the economy to rebound effectively.
Analyzing the historical trends, the Minnesota inventionINDEX has experienced periods of strong performance, reaching A+ grades multiple times over the last five years. However, there have also been instances of C and C- grades, indicating moments of weaker innovation output. The current B- grade for October 2025, while positive, suggests a need for sustained focus on innovation to consistently achieve higher scores and maintain a strong economic outlook. Continuous monitoring of these trends is essential to understand the state’s economic health and its capacity for future growth and resilience.
Discussion:
In October, the Minnesota inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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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