NEVADA INVENTIONINDEX | APRIL 2025

April 2025: 1.17% (C grade)

Nevada inventionINDEX April 2025: 1.17% (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).

Analysis of Nevada’s InventionINDEX Score (October 2024 – April 2025)

Over the past six months, Nevada’s InventionINDEX score has experienced fluctuating trends, indicating varying levels of innovation activity. In April 2025, the score reached 1.17%, which marks a notable increase from March 2025’s 0.77%. This suggests a rebound in the state’s inventive output after a brief dip earlier in the year. Scores for December 2024 and January 2025 were also low at 1.62% and 0.77%, respectively, but showed a pattern of resilience with gradual improvements seen towards the middle of 2024.

A higher InventionINDEX score typically signals robust innovation and an active environment conducive to growth in areas such as technology, patents, and research. For Nevada, a score increase, as seen from February 2025’s 0.91% to the current 1.17%, is an indication of heightened creativity and entrepreneurship. This can lead to more opportunities for new businesses, investments, and the development of cutting-edge industries within the state.

On the other hand, a lower InventionINDEX score can have negative implications. For instance, the dip in Nevada’s score in March 2025 to 0.77% suggests a potential slowdown in innovative activity, which could hinder economic growth and deter investors. A lower score typically correlates with fewer patent filings, decreased collaboration in research and development, and a reduction in competitive advantage on a national or global scale.

In summary, Nevada’s performance on the InventionINDEX is reflective of both challenges and opportunities within the state. While high scores demonstrate positive growth in innovation, lower scores highlight areas for improvement and a need for strategic focus on fostering creative industries.

Discussion:

In April, the Nevada 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 a considerable 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 Nevada office provides R&D tax credit consulting and advisory services to Las Vegas, Henderson, Reno, North Las Vegas, Sparks, Carson City, Fernley, Elko, Mesquite, and Boulder City.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.