NORTH CAROLINA INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.83% (A+ grade)

North Carolina inventionINDEX November 2025: 1.83% (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 Scores – Last 12 months

The North Carolina inventionINDEX has demonstrated a resilient and upward trajectory over the last five years, culminating in a robust November 2025 score of 1.83 percent and an A+ rating. This most recent figure indicates a position of sustained strength, maintaining a streak of high-tier performance throughout the current calendar year. When comparing this to the same period in previous cycles, there is a clear stabilization in the higher percentiles. While the index has experienced periodic fluctuations, the current standing reflects a maturation of the state’s innovative landscape, signaling that the factors driving invention and intellectual property are operating at a high level of efficiency.

Analyzing the broader historical context reveals a significant evolution from the lower markers recorded earlier in the sixty-month period. In late 2021 and early 2022, the index experienced its most notable dips, hitting a low of 1.12 percent in December 2021 with a C+ rating. Since that period, the state has effectively bridged the gap, moving from inconsistent B and C ratings to a dominant presence in the A and A+ categories. The frequency of scores exceeding 2.00 percent, such as the 2.47 percent peaks seen in July 2025 and October 2024, underscores a recurring ability to reach new heights that were rarely touched during the first two years of the observed data set.

The attainment of higher scores and A+ ratings serves as a catalyst for numerous positive economic outcomes within North Carolina. A high index score typically correlates with increased venture capital interest, a surge in patent filings, and a general environment that fosters entrepreneurial risk-taking. As the score rises, it provides a signal to global markets that the state possesses a fertile ground for technological advancement and industrial growth. This reputation helps attract top-tier talent and research institutions, creating a self-reinforcing cycle of innovation that benefits the local workforce and the broader regional economy through high-quality job creation.

Conversely, any decline in the inventionINDEX score or a slide into lower ratings like the B- or C+ tiers carries significant negative implications. A lower score often suggests a stagnation in creative output or a lack of necessary infrastructure to support new ideas. If the score remains depressed, it can lead to a loss of competitive edge as investors look toward more dynamic regions. Such a trend might result in a loss of skilled innovators who may migrate to states with higher indices, ultimately slowing down economic modernization and leaving the state vulnerable to shifts in the global market. Maintaining the current momentum is therefore essential to avoiding these potential pitfalls.

Discussion:

In November, 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.