NEBRASKA INVENTIONINDEX | NOVEMBER 2025

November 2025: 0.96% (C- grade)

Nebraska inventionINDEX November 2025: 0.96% (C- 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).

Nebraska inventionINDEX Scores – Last 12 months

The Nebraska inventionINDEX concludes its most recent sixty-month cycle with a score of 0.96 percent for November 2025, yielding a rating of C-. This current standing marks a notable decline from the historical average of approximately 1.12 percent observed across the last five years and sits significantly lower than the 1.13 percent starting point recorded in November 2020. Throughout this period, the index has experienced considerable volatility, characterized by rhythmic shifts between periods of high productivity and sudden contractions. The November 2025 performance suggests a period of relative cooling compared to the broader historical context, placing the state in a position where strategic adjustments may be necessary to return to its previous growth trajectory.

Historical peaks within the index, such as the 1.48 percent score and A+ rating achieved in June 2021, underscore the positive outcomes associated with higher grades. When Nebraska secures an A or A+ rating, it typically signals a flourishing ecosystem where intellectual property generation, research development, and entrepreneurial spirit are at their zenith. High scores often correlate with increased venture capital interest, a robust pipeline of new products reaching the market, and an enhanced ability to attract top-tier talent to the region. These periods of high achievement foster a sense of economic resilience and reinforce the state’s reputation as a competitive hub for innovation and forward-thinking industry.

Conversely, the lower bounds of the index, exemplified by the February 2025 dip to 0.82 percent and a resulting F rating, present significant challenges for the state. Such low scores often indicate a stagnation in creative output or a systemic barrier to the commercialization of new ideas. The negative implications of a lower grade include a potential loss of competitive edge against neighboring regions, a decrease in federal or private research funding, and a more cautious investment climate. When the score drops into the D or F range, it serves as a critical warning sign that the infrastructure supporting the invention pipeline may be under strain, potentially leading to a slower rate of economic diversification.

Reflecting on the full sixty-month trajectory, the Nebraska inventionINDEX reveals a state capable of dramatic recoveries and sustained periods of excellence. Despite the recent fluctuations and the current C- rating, the historical data shows that the index has successfully rebounded from similar lows in the past, such as the recovery following the 0.94 percent dip in late 2021. While the current score of 0.96 percent is below the historical mean, the overall trend demonstrates a dynamic environment that remains reactive to market conditions and internal initiatives. Maintaining a focus on the factors that drove the A-level performances seen throughout 2021, 2023, and early 2024 will be essential for steering the index back toward the upper quartiles in the coming years.

Discussion:

In November, the Nebraska inventionINDEX scored a negative 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 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.