OREGON INVENTIONINDEX | AUGUST 2025

August 2025: 2.13% (B+ grade)

Oregon inventionINDEX August 2025: 2.13% (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).

Oregon inventionINDEX Scores – Last 12 months

The Oregon inventionINDEX for August 2025 stands at 2.13%, earning a B+ grade. This current score indicates a positive sentiment regarding innovation output in the state. Compared to the previous month of July 2025, which registered 2.04% (also a B+), August shows a slight improvement. Examining the last twelve months, this August 2025 score is higher than the August 2024 score of 1.42% (C+), suggesting a year-over-year increase in innovation sentiment. Over this recent twelve-month period, the index has fluctuated, demonstrating periods of strong performance, such as April 2025 (2.65%, A grade), and periods of more moderate outcomes.

A higher inventionINDEX score and corresponding grade, particularly anything rated C or above, signals positive innovation output. This generally reflects a healthy economic environment where GDP growth is supported by robust patent production growth. Such positive trends can indicate a strong climate for research and development, business expansion, and job creation. It suggests that businesses and innovators in Oregon are actively contributing to new ideas and technologies, which can lead to increased competitiveness and economic resilience, especially in navigating challenges such as post-pandemic recovery.

Conversely, a lower inventionINDEX score or a grade below C suggests a negative outlook for innovation. This can imply a deceleration in the rate of new patent applications relative to economic growth, potentially indicating a slowdown in research and development activities, or a less dynamic innovative landscape. Such a downturn could be influenced by various factors, including economic contractions, reduced investment in innovation, or external disruptions. A sustained period of lower scores might suggest challenges in economic recovery and future growth prospects for the state.

Looking at the broader 60-month historical data, the Oregon inventionINDEX has experienced significant variability. For instance, October 2023 saw an exceptionally high score of 7.06% (A+), while January 2023 registered a negative score of -0.55% (F), highlighting considerable swings in innovation performance. The current B+ grade for August 2025 indicates a return to a more favorable position following some of the lower points in recent history. Observing these long-term trends provides valuable insight into the state’s innovation resilience and its capacity to adapt to changing economic landscapes.

Discussion:

In August, the Oregon 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 considerable 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 Oregon office provides R&D tax credit consulting and advisory services to Portland, Eugene, Salem, Gresham, Hillsboro, Beaverton, Bend, Medford, Springfield, and Corvallis.

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.