June 2025: 0.65% (D+ grade)

Nevada inventionINDEX June 2025: 0.65% (D+ 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).

Nevada’s inventionINDEX score dropped to 0.65% in June 2025, marking a significant decrease from May’s 1.88%. This sharp decline reflects a noticeable slowdown in patent filings or innovation activity for the state. Compared to the 12-month high of 2.25% in July 2024, the current figure underscores a concerning shift in momentum. Although single-month changes do not always indicate long-term trends, this is the second-lowest score in the past year-just above the 0.43% recorded in September 2024.

Looking at the broader trend, Nevada’s innovation performance has fluctuated widely. The state saw relatively strong months in late 2024, particularly December (1.62%) and October (1.39%). However, 2025 has brought more modest figures, with four of the first six months showing scores below 1.00%. This inconsistency suggests challenges in sustaining innovation activity, which could stem from economic pressures, reduced R&D spending, or limited access to commercialization resources.

A higher inventionINDEX score, like the 1.88% recorded in May 2025, typically signals a healthier innovation ecosystem. It can attract investment, encourage collaboration among research institutions, and boost job creation in high-tech sectors. Such scores often reflect a pipeline of intellectual property that could be translated into real economic impact, driving long-term competitiveness for the state.

Conversely, a lower score may signal underinvestment in innovation or barriers to filing patents. This could lead to missed opportunities in emerging markets and reduced appeal to technology-driven businesses considering Nevada as a base. If this downward trend continues, policymakers and economic developers may need to reassess support mechanisms for inventors and startups to revitalize the state’s innovation output.

Discussion:

In June, the Nevada inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar 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 if you would like to learn more about R&D tax credit opportunities.

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