NORTH CAROLINA INVENTIONINDEX | APRIL 2025

April 2025: 2.13% (A+ grade)

North Carolina inventionINDEX April 2025: 2.13% (A+ 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).

North Carolina inventionINDEX – 6-Month Performance Analysis

Over the past six months, the inventionINDEX in North Carolina has shown an upward trend, peaking at 2.13% in April 2025. This is the highest score recorded within the period, marking a substantial increase from the 1.56% in November 2024. The data indicates a general improvement in innovative activity, research development, or intellectual property generation within the state.

A higher inventionINDEX score suggests stronger engagement in inventive processes, potentially driven by academic research, tech sector growth, or supportive state policies. April 2025’s performance could signal increased funding or a successful pipeline of patent applications, benefiting the local economy through job creation, startup formation, and greater national competitiveness.

On the downside, fluctuations such as the dip in February 2025 (1.55%) could reflect short-term disruptions. If the score were to decline again, it might imply reduced research output, limited commercialization of ideas, or funding constraints. Such trends may discourage investment or signal stagnation in sectors reliant on innovation.

Overall, the upward trajectory is a positive sign for North Carolina’s innovation ecosystem. Maintaining this momentum is critical to ensuring long-term economic resilience and leadership in emerging technologies.

Discussion:

In April, the North Carolina inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 North Carolina office provides R&D tax credit consulting and advisory services to Charlotte, Raleigh, Greensboro, Durham, Winston Salem, Fayetteville, Cary, Wilmington, High Point, Greenville, Asheville, Concord, Gastonia, Jacksonville, Chapel Hill, Rocky Mount, Huntersville, Burlington, Wilson and Kannapolis.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.