NEW HAMPSHIRE INVENTIONINDEX | MAY 2025
May 2025: 1.27% (B- grade)
New Hampshire inventionINDEX May 2025: 1.27% (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 New Hampshire inventionINDEX for May 2025 registered at 1.27%, showing a slight decline from the previous month’s 2.09%. While this dip breaks a short upward trend seen in April, it remains consistent with several earlier months, such as February and September 2024, which both stood at 1.27% as well. Over the past year, the index has experienced fluctuations, peaking at 2.09% in April 2025 and reaching a low of 1.00% in November 2024. These patterns suggest a modest but ongoing variability in inventive activity within the state.
A higher inventionINDEX score often signals heightened innovation output, increased intellectual property filings, and a dynamic entrepreneurial climate. The April 2025 spike, for example, may reflect a successful funding cycle, a favorable policy shift, or a wave of technological advancements. Such increases typically correlate with job creation in high-skill sectors, improved competitiveness for local companies, and stronger positioning of the state in the national innovation landscape. These outcomes attract attention from investors and policy makers looking to support innovation hubs.
Conversely, a lower score—such as the 1.00% recorded in November 2024—can imply stagnation or reduced research and development activities. It may reflect macroeconomic pressures, budgetary constraints in key institutions, or a temporary lapse in patent filings. If prolonged, these troughs can have broader implications, including the erosion of talent pipelines, diminished venture capital interest, and a slower pace of commercialization for emerging technologies. Stakeholders may then need to assess whether the decline is part of a cyclical dip or signals a deeper structural issue.
Looking at the broader picture, New Hampshire’s inventionINDEX over the past 12 months has shown resilience, with most scores remaining above 1.25%. While not immune to short-term fluctuations, the overall stability of the index suggests a relatively balanced innovation environment. To sustain growth, continued investment in STEM education, startup incubation, and intellectual property support infrastructure will be essential. Monitoring the trend in coming months will provide a clearer view of whether the recent dip is temporary or part of a more significant shift.
Discussion:
In May, the New Hampshire inventionINDEX scored a positive 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 an 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 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.
