NORTH DAKOTA INVENTIONINDEX | MAY 2025
May 2025: 1.19% (A+ grade)
North Dakota inventionINDEX May 2025: 1.19% (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 inventionINDEX Score for May 2025 stands at 1.19%, marking the highest level recorded in the past 12 months. This represents a notable increase from the April 2025 score of 1.00% and is also higher than any other monthly value shown in the data set. This upward trend suggests a strengthening of innovation activity in North Dakota, with May 2025 outperforming the 12-month average score of approximately 1.09%. Such a rise reflects growing momentum in invention-related efforts, which may indicate more patent filings, increased research activity, or a general uptick in technological development within the state.
A higher inventionINDEX Score typically suggests a healthier innovation ecosystem. In practical terms, this could mean that North Dakota is becoming a more attractive environment for entrepreneurs, startups, and research institutions. Economic development agencies and local universities may see the results as validation of their innovation investments and policy efforts. It can also enhance the state’s reputation in national innovation rankings, potentially drawing attention from outside investors and collaborators seeking fertile ground for new ventures.
Conversely, several months over the past year showed lower inventionINDEX scores, with values as low as 1.00% to 1.04% recurring frequently, such as in June, August, September, and May 2024. These relatively stagnant figures could signal periods of reduced innovation output or delayed patent filings. If sustained over time, such patterns might suggest structural limitations in the regional innovation pipeline, such as talent shortages, funding constraints, or policy barriers. Although small monthly dips are not unusual, consistency in low scores may hinder broader economic aspirations tied to tech growth.
Looking at the broader trend, North Dakota appears to be experiencing a modest rebound in invention activity, with the recent spike offering encouraging signs. However, maintaining or further improving this trajectory will depend on continued support for R&D infrastructure, education, and entrepreneurship. Monitoring future inventionINDEX scores will be crucial to determine whether the state can sustain this momentum or if the May 2025 value represents a temporary peak. A stable or rising score over the coming quarters would offer stronger confirmation of a long-term positive shift in North Dakota’s innovation landscape.
Discussion:
In May, the North Dakota 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 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 if you would like to learn more about R&D tax credit opportunities.
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