NORTH DAKOTA INVENTIONINDEX | APRIL 2025

April 2025: 1.00% (C grade)

North Dakota inventionINDEX April 2025: 1.00% (C 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 Dakota inventionINDEX: 6-Month Performance Analysis

The inventionINDEX for North Dakota over the past six months shows moderate fluctuations with a slight overall downward trend. From October 2024 to April 2025, the index moved from a peak of 1.17% in October 2024 to a low of 1.00% in April 2025. This progression may reflect varying levels of innovation activity, policy effectiveness, and economic drivers impacting inventive output.

Higher inventionINDEX scores—such as those observed in January and December—suggest increased patent filings, R&D investments, or successful commercialization of new technologies. These trends can signal a robust innovation ecosystem, encouraging investor confidence, attracting talent, and promoting regional economic growth. The rise to 1.14% in January 2025 likely reflected seasonal or policy-driven surges in innovation activity.

However, a decline to 1.00% by April 2025 may be cause for concern. Lower scores can indicate a slowdown in innovation output, possible budgetary restrictions, or reduced entrepreneurial activity. Over time, this can erode competitive advantages and limit opportunities for diversification. If this downward trend continues, stakeholders may need to investigate and address underlying barriers to innovation in North Dakota.

Discussion:

In April, the North Dakota inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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 Dakota office provides R&D tax credit consulting and advisory services to Fargo, Bismarck, Grand Forks, Minot, and West Fargo.

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.