NEW YORK INVENTIONINDEX | MAY 2025
May 2025: 0.90% (D+ grade)
New York inventionINDEX May 2025: 0.90% (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).
The May 2025 inventionINDEX Score for New York stands at 0.90%, marking a modest increase from March and February of the same year, which posted scores of 0.87% and 0.89%, respectively. However, this latest figure represents a slight drop from the April 2025 score of 1.09%. While still within a healthy range, the score suggests a mild deceleration in inventive activity compared to the prior month. When placed in a broader historical context, this level is relatively stable, sitting just below the 12-month average and indicating a consistent—albeit fluctuating—pace of innovation across the year.
Looking further back, the score of 0.90% for May 2025 aligns closely with last December’s 0.91%, reflecting a pattern of recurring plateaus after months of more robust performance. Notably, the highest recent scores occurred in October 2024 (1.24%) and July 2024 (1.16%), suggesting that certain periods continue to outperform due to sector-specific surges or favorable policy windows. These peaks stand in contrast to months like November 2024 (0.85%) and March 2025 (0.87%), which signal softer phases in inventive productivity. Taken together, the data points to a cyclical rhythm rather than a steep upward or downward trend.
A higher inventionINDEX Score typically reflects an increase in patent filings, technological advancement, and economic dynamism—particularly in fields such as biotech, fintech, and clean energy. For policymakers and investors, scores above 1.00% may suggest a fertile environment for R&D investment, job creation in high-skill sectors, and regional competitiveness. Businesses can interpret these surges as indicators of market readiness for innovation-driven products and services, potentially influencing strategic decisions such as expansion, hiring, or capital allocation.
Conversely, a drop in the score—especially when sustained over multiple months—can indicate a slowdown in inventive momentum. This might be driven by factors such as regulatory bottlenecks, capital constraints, or shifts in workforce skill availability. Lower scores can reduce the region’s appeal to venture capital and could signal a need for renewed support through innovation grants, incubator programs, or university research funding. While a 0.90% reading does not raise immediate concern, it underscores the importance of maintaining the conditions that support steady and scalable innovation activity.
Discussion:
In May, the New York inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast 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 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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