OHIO INVENTION INDEX – MARCH 2025
The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth.
Ohio Invention Index March 2025: 0.91% (C- grade)
Ohio Invention Index over the last year:
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).
Ohio Invention Index Scores (September 2024 – March 2025)
| Month | Invention Index Score |
|---|---|
| September 2024 | 1.34% (C+) |
| October 2024 | 3.09% (A) |
| November 2024 | 0.89% (C-) |
| December 2024 | 2.54% (B+) |
| January 2025 | 2.00% (B-) |
| February 2025 | 2.23% (B) |
| March 2025 | 0.91% (C-) |
Analysis
Comparison with Previous Months:
The March 2025 score of 0.91% represents a sharp decline from February 2025’s 2.23%, marking a 1.32 percentage point drop. This is the most significant month-over-month decrease since October to November 2024, when the index fell by 2.2 percentage points.
Long-Term Trends:
Over the six-month period, the Invention Index shows a fluctuating pattern. After a high in October 2024 (3.09%), the index declined in November, rebounded in December, and showed relatively stable performance from January to February before dipping again in March. The trend lacks a clear upward or downward trajectory, indicating inconsistency in monthly innovation activity.
Significant Changes:
October 2024 stands out with the highest score (3.09%, A grade), while November 2024 and March 2025 reflect the lowest scores (0.89% and 0.91%, respectively), both earning C- grades. The October spike and subsequent drop suggest volatility, possibly reflecting changes in reporting, policy, or R&D output—though no specific cause is evident from the data alone.
Contextualizing the Data:
March 2025’s low score appears more as a return to the November low rather than a continuation of the steady mid-range values observed from December through February. This fluctuation may signal instability rather than a sustained decline, but it disrupts the relatively stable trend of the prior three months.
Discussion:
In March, the Ohio Invention Index scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a further decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.
Learn more about the Invention Index here.
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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
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The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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