NEVADA INVENTIONINDEX | MAY 2025
May 2025: 1.88% (B- grade)
Nevada inventionINDEX May 2025: 1.88% (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 latest inventionINDEX Score for May 2025 stands at 1.88%, marking a noticeable uptick from April’s 1.17%. This represents the third-highest score over the past twelve months, trailing only behind July 2024’s 2.25% and December 2024’s 1.62%. This upward movement may suggest a renewed momentum in Nevada’s innovation environment, potentially reflecting increased patent filings, successful commercialization of technologies, or a more conducive investment climate. It’s especially encouraging given that March and January 2025 saw subdued growth, both at 0.77%, indicating that May’s result is not just seasonal fluctuation but perhaps a sign of renewed energy in innovation.
When placing May 2025’s figure within the broader context of the past year, a clear narrative of fluctuation emerges. The second half of 2024 was characterized by inconsistent performance, with lows such as September’s 0.43% and highs like July’s 2.25%. The volatility suggests that while Nevada has potential for high innovation output, sustaining that momentum remains a challenge. The recent score may reflect the beginning of a more consistent upward trend, though it is too early to declare a pattern. Nevertheless, the three-month average ending in May 2025—1.27%—sits higher than the same average for late 2024, showing a slight but meaningful positive shift.
A higher inventionINDEX Score generally signals improved conditions for innovation: increased R&D activity, more robust support ecosystems for startups, and perhaps greater collaboration between academic institutions and industry. Such environments tend to attract both public and private investment, create jobs in advanced sectors, and position the state more competitively on a national scale. For Nevada, a score like 1.88% indicates an above-average pace of innovation generation, which could translate to new technologies entering the market faster and stronger economic returns over time.
Conversely, when the score dips—as seen in months like November 2024 (0.57%) and September 2024 (0.43%)—it may reflect reduced patent activity, a drop in R&D investment, or macroeconomic factors limiting innovation. Persistent low scores risk signaling to stakeholders that Nevada’s innovation pipeline is weakening, which can hinder the state’s appeal to investors and collaborators. While short-term declines are not uncommon, long-term stagnation would be more concerning. Therefore, maintaining and building upon the progress seen in May 2025 will be critical for ensuring that Nevada’s innovation economy remains resilient and growth-oriented.
Discussion:
In May, 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 if you would like to learn more about R&D tax credit opportunities.
Who We Are:
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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.
