NEBRASKA INVENTIONINDEX | MAY 2025
May 2025: 1.11% (B- grade)
Nebraska inventionINDEX May 2025: 1.11% (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 Nebraska inventionINDEX Score for May 2025 stands at 1.11%, showing a moderate yet notable rebound from the previous month’s score of 1.21%. While this figure is slightly lower than April’s, it still represents a strong performance when placed in context with the past twelve months. Compared to May 2024, when the index measured 0.92%, this year’s score reflects an 0.19 percentage point increase. This annual growth signals a steady improvement in the state’s innovation momentum, suggesting that local inventors, businesses, and institutions are continuing to contribute meaningfully to the region’s intellectual property output.
Throughout the last year, the inventionINDEX has remained relatively stable, mostly hovering around the 1.00% mark. Peaks in August 2024 and December 2024, both at 1.23%, highlight periods of elevated innovation activity, possibly due to funding cycles, academic patent submissions, or corporate R&D output. The May 2025 figure, although not the highest of the year, aligns with this overall trend of consistent productivity. Maintaining a score above 1.00% is indicative of a strong foundation of inventive effort across the state, even amid fluctuations in national or global patenting activity.
A higher inventionINDEX score often translates into several positive outcomes for Nebraska. It can attract greater interest from venture capitalists and technology incubators looking to invest in high-potential regions. Additionally, a strong score enhances the reputation of the state’s academic and research institutions, making them more appealing to top-tier faculty and students. On an economic level, higher innovation activity is often linked with job creation in STEM fields, licensing revenues, and an increase in startup formation, all of which contribute to the state’s competitiveness.
Conversely, if the inventionINDEX score were to fall below the 1.00% threshold for multiple consecutive months, it could raise concerns about diminishing patent output or reduced R&D investment. Such a trend might indicate challenges in funding, brain drain, or insufficient support for early-stage innovation. Over time, a declining score could weaken Nebraska’s positioning as a hub for invention and reduce its influence in national innovation rankings. Therefore, maintaining or exceeding the current level is crucial for sustaining growth and ensuring that the local innovation ecosystem remains vibrant and forward-looking.
Discussion:
In May, the Nebraska 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 Nebraska office provides R&D tax credit consulting and advisory services to Omaha, Lincoln, Bellevue, Grand Island, and Kearney.
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.
