MISSOURI INVENTIONINDEX | MAY 2025

May 2025: 1.16% (A- grade)

Missouri inventionINDEX May 2025: 1.16% (A- 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 Missouri inventionINDEX Score for May 2025 stands at 1.16%, reflecting a stable performance in statewide innovation activity compared to previous months. When juxtaposed with April 2025’s 1.24%, the slight dip suggests a modest easing of momentum but remains within a healthy range. Compared to the same month last year—May 2024, which posted a 1.15%—this latest figure indicates a marginal year-over-year improvement. This suggests consistency in the state’s innovation environment, with no sharp declines that might point to structural issues.

Over the last 12 months, the inventionINDEX Score has fluctuated between a low of 1.04% and a high of 1.27%, highlighting the naturally variable nature of innovation output. Notably, Missouri experienced its highest scores in July 2024 and October 2024, both registering at 1.27%. These peaks may correspond with the seasonal cycle of patent filings or investment surges in R&D-intensive sectors. Despite the slight dip in May 2025, the current score is still above the recent lows seen in August and November 2024, indicating that Missouri has avoided any significant downtrend.

A higher inventionINDEX Score often correlates with increased innovation throughput, improved economic resilience, and stronger intellectual property output—factors that can attract venture capital, foster startup growth, and enhance the state’s competitiveness. Consistently strong scores may also reflect effective policy support, well-funded research institutions, and a collaborative innovation ecosystem. For businesses and policymakers, maintaining or increasing this score is essential for long-term regional advancement.

Conversely, if the score were to trend lower for consecutive months, it could signal emerging challenges. These might include reduced R&D activity, waning investor interest, or inefficiencies in the innovation pipeline. A declining score could have downstream implications such as slower economic diversification, a shrinking tech labor market, or less visibility in national innovation rankings. For stakeholders, vigilance is necessary to ensure that any downward movement is quickly diagnosed and addressed through targeted strategies.

Discussion:

In May, the Missouri inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an upward 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 Missouri office provides R&D tax credit consulting and advisory services to Kansas City, St Louis, Springfield, Columbia, Independence, Lees Summit, Ofallon, St Joseph, St Charles, and Blue Springs.

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.