NORTH CAROLINA INVENTIONINDEX | MAY 2025
May 2025: 1.75% (A+ grade)
North Carolina inventionINDEX May 2025: 1.75% (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).
The North Carolina inventionINDEX Score for May 2025 stands at 1.75%, marking a modest but meaningful shift in the region’s innovation momentum. Compared to the previous month’s score of 2.13% in April 2025, this represents a noticeable decrease of 0.38 percentage points, suggesting a slight cooling in innovation activity. However, it’s important to consider this in context: the current figure aligns closely with the 12-month average of 1.78%, reflecting overall consistency in the state’s inventive output.
Looking back across the year, North Carolina’s inventionINDEX Score has demonstrated healthy variability, peaking at 2.47% in October 2024, a high point that likely stemmed from a surge in patent filings or high-value innovation events. On the lower end, scores such as 1.50% in August 2024 and 1.55% in February 2025 reveal occasional dips, potentially linked to seasonal fluctuations or strategic realignments by key innovation players. May 2025’s score, though down from the previous month, remains above several earlier figures, including January, February, and August 2024, indicating resilience in the broader trend.
A higher inventionINDEX Score often signals increased intellectual property activity, stronger R&D investment, and a more vibrant innovation ecosystem. For stakeholders—ranging from university tech transfer offices to startup incubators—an uptick can improve funding opportunities, attract talent, and stimulate local economic development. Sustained high scores also position the region favorably in national and global innovation rankings, enhancing its appeal to external investors and collaborators.
Conversely, a declining or stagnating score can raise concerns, particularly if the drop persists over several months. A lower score might reflect reduced patent filings, slower commercialization efforts, or diminishing support for early-stage ventures. This can lead to missed funding cycles, less competitive grant proposals, and overall reduced visibility. While the May 2025 decline isn’t dramatic, ongoing vigilance is essential to ensure the state continues to cultivate an environment where innovation is not only sustained but accelerated.
Discussion:
In May, the North Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar 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 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.
