NEW YORK INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.03% (C grade)

New York inventionINDEX September 2025: 1.03% (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).

New York inventionINDEX Scores – Last 12 months

In September 2025, the New York inventionINDEX registered a score of 1.03%, earning a C grade. This performance indicates a stable but not exceptionally strong period of innovation output when compared to the historical data. While a C grade signifies a positive sentiment, suggesting that innovation output is keeping pace with economic growth, it also highlights an opportunity for further improvement to reach higher tiers of performance observed in prior months and years.

A higher inventionINDEX score and a corresponding better grade, such as a B or A, typically signify robust innovation output, where patent production growth is notably outpacing GDP growth. Such periods often correlate with enhanced economic resilience, as innovation drives new industries, creates jobs, and fosters long-term prosperity. States or countries consistently achieving higher grades are better positioned to navigate economic shifts and recover more swiftly from downturns, as their innovative capacity provides a strong foundation for future growth and competitiveness.

Conversely, a lower inventionINDEX score, such as a D or lower, suggests that innovation output is not keeping pace with economic expansion, or may even be declining relative to GDP growth. This can have several negative implications, including a potential slowdown in economic recovery, reduced competitiveness in the global market, and a less dynamic business environment. A sustained period of lower scores might indicate underlying challenges in research and development, investment in new technologies, or the overall support system for innovators.

Observing the New York inventionINDEX over the past 60 months reveals fluctuations that underscore these points. While there have been periods of strong performance, such as August 2023 and March 2021, both achieving an A grade, there have also been instances of D grades, indicating periods of weaker innovation. The current C grade in September 2025, while positive, suggests that New York’s innovation landscape is in a moderate state, capable of improvement to consistently reach the higher innovation output levels seen in its more robust historical periods.

Discussion:

In September, 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.

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.