NEBRASKA INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.04% (C+ grade)

Nebraska inventionINDEX September 2025: 1.04% (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

In September 2025, the Nebraska inventionINDEX registered a score of 1.04%, earning a C+ grade. This places it within the positive sentiment range, as anything above a C grade is considered favorable. Comparing this to the previous month, August 2025, which saw a higher score of 1.17% (B+ grade), indicates a slight decrease in the innovation output for September. However, it is consistent with the score from September 2024, also at 1.04% (C+ grade), suggesting a cyclical pattern or a return to a baseline performance year-over-year.

A higher inventionINDEX score and a corresponding higher grade, such as the A+ recorded in February 2024 (1.31%) or January 2023 (1.35%), signify robust innovation output. This positive sentiment suggests a strong correlation between GDP growth and patent production growth, which can be a key indicator of economic vitality. States with consistently higher grades are often better positioned for economic recovery from downturns, as innovation drives new industries, creates jobs, and fosters overall prosperity. Such performance can attract investment and talent, further bolstering the state’s economic resilience.

Conversely, a lower inventionINDEX score and a grade below C, such as the F grade in February 2025 (0.82%) or the D+ in May 2024 (0.92%), indicate a negative outlook. These scores suggest that the growth in patent production is not keeping pace with GDP growth, which can signal underlying economic challenges. A sustained period of lower scores might point to reduced research and development capabilities, company closures, or a shrinking workforce, all of which can hinder economic recovery and long-term growth. It could also reflect a backlog in patent applications or other lingering consequences from economic incidents.

Analyzing the historical data, the Nebraska inventionINDEX has experienced fluctuations over the past 60 months. While there have been periods of strong performance with A and A+ grades, there have also been instances of D and F grades, indicating periods of weaker innovation. Observing these trends over time allows for a comprehensive understanding of Nebraska’s innovation landscape, offering valuable insights into its economic trajectory and potential areas for strategic intervention to encourage sustained positive sentiment in its innovation output.

Discussion:

In September, the Nebraska 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 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.