June 2025: 0.78% (D- grade)

New Jersey inventionINDEX June 2025: 0.78% (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).

New Jersey’s inventionINDEX score for June 2025 came in at 0.78%, marking a slight decline from May’s 0.90%. Although the decrease is not dramatic, it represents a small but consistent downward trend when compared with April (0.87%) and March (also 0.78%). This suggests a plateau in patent activity rather than a sharp drop, which may indicate stabilization following early-year fluctuations. The state continues to hover around its 12-month average of approximately 0.85%, placing June’s figure just below the typical monthly performance.

When reviewing New Jersey’s performance over the past year, July 2024 stands out with the highest score of 1.03%, while November 2024 posted the lowest at 0.68%. This range illustrates the state’s generally moderate pace in intellectual property generation, with few outliers. The relative steadiness of monthly figures implies that while New Jersey is not currently experiencing significant growth in innovation filings, it also isn’t undergoing sharp declines. The June 2025 number simply reinforces this overall stability.

Higher inventionINDEX scores typically reflect stronger innovation climates, increased R&D activity, and robust patent submissions. A score above the yearly average, such as those seen in July and December 2024 (1.03% and 0.93% respectively), can enhance a state’s reputation as a center of invention and attract both investment and talent. These periods often coincide with stronger support from research institutions or industry partnerships that boost patent output.

Conversely, if the score remains consistently low or begins to decline, it may signal underlying issues such as reduced funding for innovation, a lag in commercialization efforts, or less engagement from inventors and startups. For policymakers and economic developers, a stagnating or falling score like June’s should prompt strategic review. While 0.78% does not represent a severe drop, it is a reminder that sustained momentum is crucial to maintaining competitiveness in an innovation-driven economy.

Discussion:

In June, the New Jersey inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 Jersey office provides R&D tax credit consulting and advisory services to Newark, Jersey City, Paterson, Elizabeth, Edison, Woodbridge, Lakewood, Toms River, Hamilton, and Trenton.

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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