NORTH CAROLINA INVENTIONINDEX | SEPTEMBER 2025

September 2025: 2.30% (A+ grade)

North Carolina inventionINDEX September 2025: 2.30% (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

In September 2025, the North Carolina inventionINDEX registered a score of 2.30% with an A+ rating, reflecting a strong performance. This score is notably higher than the state’s average over the past year, indicating a positive shift in innovation output. A higher inventionINDEX score and an A+ grade signify robust economic activity driven by innovation, suggesting a healthy environment for business growth, investment, and job creation. Such positive indicators often lead to increased confidence among investors and can attract new businesses to the region, further stimulating economic development.

Comparing the September 2025 score to previous months reveals fluctuations, yet a general trend of resilience. While there have been periods of slightly lower scores, such as 1.55% in February 2025 (A-) or 1.12% in December 2021 (C+), the current A+ rating demonstrates a consistent ability to rebound and achieve high levels of innovation. This sustained performance, particularly when compared to earlier periods, suggests that North Carolina’s innovation ecosystem is maturing and adapting to economic shifts, maintaining a competitive edge.

Conversely, a lower inventionINDEX score or grade carries significant implications. A decrease in the index suggests a slowdown in innovation output, which can be a precursor to economic stagnation or decline. Lower grades, such as the B+ ratings seen in August 2024 (1.50%) or December 2023 (1.45%), indicate a less dynamic environment, potentially signaling reduced patent production relative to GDP growth. This could lead to a less attractive market for new ventures, a decrease in research and development investments, and ultimately, a slower pace of economic recovery or growth.

The ability to maintain a high inventionINDEX score, as North Carolina has largely demonstrated, is crucial for long-term economic prosperity. It reflects a region’s capacity for sustained innovation, which is vital for navigating economic challenges and fostering a competitive economy. The analysis of these historical trends provides valuable insights for policymakers and businesses, highlighting the importance of supportive environments that encourage and reward innovative endeavors to ensure continued economic vitality.

Discussion:

In September, 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 similar to the prior 12 months, which experienced a 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 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.