NEW YORK INVENTIONINDEX | APRIL 2025
April 2025: 1.09% (C+ grade)
New York inventionINDEX April 2025: 1.09% (C+ 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).
Analysis of New York InventionINDEX Score Trends
The inventionINDEX score for New York shows fluctuations over the past six months, with April 2025 scoring 1.09%. This marks a slight increase compared to the previous month (March 2025), where the score was 0.87%. The upward trend from March to April suggests a positive trajectory in terms of innovation output and technological advancements, which can foster more investments in R&D and innovation. A higher score typically indicates increased research activities, product development, and technological breakthroughs, boosting the region’s competitiveness on a global scale.
However, when comparing the current score to earlier months, such as the peak of 1.28% in April 2024, it reveals a slight decline over the past year. The reduction from 1.28% to 1.09% implies a possible slowdown in invention activities, signaling areas that might require increased focus or investment. A decrease in the inventionINDEX score can hinder economic growth and slow the pace of technological progress, potentially limiting New York’s leadership in innovation and disrupting its position as a hub for new technologies.
Despite this, the positive outcomes of a higher score are considerable. A higher inventionINDEX score often correlates with increased patent activity, stronger entrepreneurial ecosystems, and greater collaboration among industries. It also reflects a more vibrant tech sector, with more companies emerging and contributing to a larger market share.
In contrast, lower scores can indicate reduced momentum in R&D, leading to fewer groundbreaking inventions and a potential decline in global market positioning. Lower scores could also signal underutilization of the region’s innovation potential, which could impact job creation, economic growth, and overall competitiveness.
| Month | InventionINDEX Score |
|---|---|
| April 2025 | 1.09% |
| Mar 2025 | 0.87% |
| Feb 2025 | 0.89% |
| Jan 2025 | 1.09% |
| Dec 2024 | 0.91% |
| Nov 2024 | 0.85% |
Discussion:
In April, the New York inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 York office provides R&D tax credit consulting and advisory services to New York City, Buffalo, Rochester, Yonkers, Syracuse, Albany, New Rochelle, Mount Vernon, Schenectady, Utica, White Plains, Troy, Niagara Falls, Binghamton, Rome, Long Beach, Poughkeepsie, North Tonawanda, Jamestown and Ithaca.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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