OHIO INVENTIONINDEX | MAY 2025
May 2025: 2.25% (B grade)
Ohio inventionINDEX May 2025: 2.25% (B 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 May 2025 inventionINDEX score for Ohio stands at 2.25%, reflecting a modest increase from April’s 1.75%. This upward movement signals a positive trend in innovative activity across the state. Compared to the preceding month of March 2025, which posted a significantly lower 0.91%, the May score represents a substantial rebound. While the current figure does not match the highest scores observed over the past year, such as July 2024’s 3.47% or October 2024’s 3.09%, it does indicate a return to healthier levels of inventive engagement after a quieter start to the spring.
Looking more broadly, the average score for the past twelve months hovers near 2.0%, situating May 2025 slightly above this average. This suggests that the state is maintaining a stable pace of patent activity and R&D output, despite occasional fluctuations. Periods like November 2024 and March 2025, with scores below 1.0%, highlight months where innovation may have slowed, potentially due to market uncertainty or seasonal R&D cycles. May’s performance, therefore, is a reassuring indication that innovation dynamics are regaining momentum as the summer approaches.
A higher inventionINDEX score typically correlates with a stronger pipeline of intellectual property, signaling that businesses and research institutions are actively investing in new technologies and solutions. This can translate into broader economic advantages, such as job creation, increased venture capital interest, and a greater competitive edge for Ohio-based firms. Additionally, a robust innovation climate fosters collaboration between academia and industry, further accelerating the commercialization of research and development efforts.
Conversely, a lower score may reflect hesitancy in investment, strategic pauses in R&D, or external constraints such as funding limitations or regulatory hurdles. While a single low month might be negligible, a pattern of declining scores could suggest emerging structural issues within the state’s innovation ecosystem. It is therefore essential for policymakers and industry leaders to remain attentive to these trends and continue to support programs that stimulate invention, patent activity, and technological entrepreneurship across Ohio.
Discussion:
In May, the Ohio inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable 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 Ohio office provides R&D tax credit consulting and advisory services to Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Parma, Canton, Youngstown, Lorain, Hamilton, Springfield, Kettering, Elyria, Lakewood, Cuyahoga Falls, Middletown, Euclid, Newark and Mansfield.
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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