NORTH CAROLINA INVENTION INDEX – MARCH 2025

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

North Carolina Invention Index March 2025: 1.67% (A grade)

North Carolina Invention Index over the last year:

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 Invention Index (Sep 2024 – Mar 2025)

Concise Analysis

Comparison with Previous Months:
In March 2025, North Carolina’s Invention Index score was 1.67%, reflecting a moderate increase from February (1.56%) and January (1.59%). The March score marks a slight rebound after two months of lower scores, though it does not reach the highs of December (1.97%) or October (2.47%).

Long-Term Trends:
Over the seven-month period, scores have generally fluctuated without a clear linear trend. October 2024 saw the highest score (2.47%), followed by a notable drop in November (1.56%). Since then, scores have hovered around the mid-1.5% range, indicating relative stability but at a slightly lower level than the fall 2024 peak.

Significant Changes:
October’s jump to 2.47% stands out as the most significant increase in the period, followed by a sharp decline in November. Another notable shift occurred between November and December, where the score rose to 1.97%. These changes suggest possible short-term events or factors influencing innovation rates during those months, though specific causes are not identifiable from the data alone.

Contextualizing the Data:
The March 2025 score (1.67%) is slightly above the average of the preceding two months, hinting at a potential upward correction. While not a dramatic increase, it may suggest stabilization or mild growth. However, given the overall variability and the absence of consistent upward momentum, it is too early to call this a definitive trend reversal.

Discussion:

In March, the North Carolina Invention Index scored a positive 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 world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.

Learn more about the Invention Index here.

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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

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