July 2025: 2.09% (A+ grade)

New Hampshire inventionINDEX July 2025: 2.09% (A+ 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).

New Hampshire inventionINDEX Scores – Last 12 months

Based on the historical data for the last 60 months, the New Hampshire inventionINDEX score for July 2025 is 2.09%, earning an A+ rating. This recent score is notably higher than the 60-month average of approximately 1.67% and stands as one of the stronger performances in the historical data set. The most recent score represents a significant increase from the previous month’s score of 1.30% and places it within the top quartile of all scores recorded. The overall data indicates a pattern of fluctuating performance with periods of both strong and weaker scores, highlighting a dynamic innovation landscape.

A higher inventionINDEX score and a favorable rating such as an A+ signifies a robust and thriving environment for innovation and economic growth. High scores, like the peak of 2.54% in August 2023, reflect a period of heightened inventiveness and successful entrepreneurial activity. Such positive outcomes suggest that the state is attracting and retaining talent, fostering a climate where new ideas and technologies can flourish, and potentially leading to the creation of high-value jobs and increased economic output. This performance can also enhance New Hampshire’s reputation as a leader in key industries, making it an attractive destination for investors and businesses seeking to innovate.

Conversely, a lower inventionINDEX score, such as the low of 0.89% in December 2021, raises concerns about the state of innovation. Such a dip could signal a slowdown in research and development, a decrease in new patents or intellectual property, or a less competitive business environment. The negative implications of a lower score may include a stagnation of economic growth, a reduction in the state’s attractiveness to new businesses, and a potential outflow of skilled workers. While temporary fluctuations are normal, a sustained period of lower scores could suggest underlying challenges in the ecosystem that supports innovation, requiring attention and strategic intervention.

In conclusion, the historical table reveals that New Hampshire’s inventionINDEX has experienced a wide range of performance over the past five years, with scores ranging from a low of 0.89% to a high of 2.54%. While the current score of 2.09% is a positive indicator, the historical pattern suggests that consistent performance is a challenge. A continuous focus on policies and investments that support a stable and innovative environment will be crucial to ensure the state’s long-term success. Maintaining a high score requires sustained effort and a strategic approach to nurturing an ecosystem that can consistently produce strong outcomes.

Discussion:

In July, the New Hampshire inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a 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 New Hampshire office provides R&D tax credit consulting and advisory services to Manchester, Nashua, Concord, Derry, and Dover.

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.

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