NEW YORK INVENTIONINDEX | NOVEMBER 2025

November 2025: 0.83% (D grade)

New York inventionINDEX November 2025: 0.83% (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 York inventionINDEX Scores – Last 12 months

The November 2025 inventionINDEX score of 0.83% represents a notable decline when viewed against the broader five-year historical context. This rating of “D” places current performance near the lower boundary of the index’s historical range, contrasting sharply with the robust levels observed in previous years. For instance, the score reached a peak of 1.70% in March 2021 and maintained several “A” level ratings throughout late 2021 and mid-2023. The recent downward trajectory from the “B” and “C” ranges seen in early 2024 suggests a cooling period in the regional innovation landscape compared to the high-activity phases recorded between 2021 and 2023.

A higher inventionINDEX score, typically reflected in grades of “A” or “B,” signals a flourishing environment for intellectual property development and entrepreneurial activity. When the score ascends, it often correlates with increased venture capital investment, a surge in patent filings, and a more dynamic labor market for high-tech professionals. High scores suggest that the local ecosystem is effectively converting research and development efforts into tangible assets, which enhances the region’s global competitiveness. Such periods of growth often lead to a virtuous cycle where success attracts more talent and funding, further solidifying the area’s reputation as a hub for groundbreaking advancements.

Conversely, the persistence of lower scores and “D” ratings, such as those observed in late 2025, presents significant challenges for the economic health of the sector. A lower score typically implies a slowdown in the output of new ideas or a breakdown in the pipeline from concept to commercialization. This stagnation can lead to reduced investor confidence, potentially causing capital to migrate to more active regions. Furthermore, a prolonged dip in the index may indicate that the local infrastructure for innovation is underperforming, which can result in a loss of talent as skilled researchers and engineers seek opportunities in more vibrant markets. The impact of these lower ratings is often felt in a decreased rate of business formation and a more cautious approach to long-term research projects.

While the current data indicates a period of relative inactivity, the historical fluctuations show that the index is capable of rapid recovery. Historical data shows that the innovation climate can shift based on policy changes, major technological breakthroughs, or broader market shifts. To regain the momentum seen during the peaks of 2021, there is a clear need for targeted support and strategic investment in the key drivers of the inventionINDEX. Monitoring these trends is essential for stakeholders to understand the underlying shifts in the economic landscape and to implement measures that will steer the region back toward a trajectory of high-value innovation.

Discussion:

In November, 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 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.

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. 

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