MISSISSIPPI INVENTION INDEX – MARCH 2025

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

Mississippi Invention Index March 2025: 0.77% (D- grade)

Mississippi Invention Index over the last year:

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).

Discussion:

In March, the Mississippi Invention Index scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.

Analysis:

1. Trends in the Scores Over Time:

   Mississippi’s Invention Index scores over the past seven months indicate fluctuations in innovation output relative to economic growth. The scores peaked in November 2024 at 1.44% (A+ grade) and reached a low in December 2024 at 0.68% (F grade). This suggests variability in the state’s innovation activities during this period.

2. Possible Reasons Behind Increases or Decreases:

   The increase in November 2024 could be attributed to a surge in patent filings or advancements in research and development activities. Conversely, the decline in December 2024 may reflect a slowdown in innovation efforts or economic factors affecting patent production.

3. Implications of Higher vs. Lower Scores for Innovation and the Local Economy:

   Higher Invention Index scores generally indicate a robust innovation environment, which can lead to economic growth and competitiveness. Lower scores may signal challenges in innovation output, potentially impacting the state’s economic prospects and attractiveness to investors.

4. Any Standout Anomalies or Shifts Worth Noting:

   The notable increase in November 2024 followed by a decline in subsequent months suggests a short-term boost in innovation activities that was not sustained. This pattern may warrant further investigation into the factors influencing these changes to develop strategies for consistent innovation growth.

Learn more about the Invention Index here.

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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

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