OREGON INVENTIONINDEX | DECEMBER 2025
December 2025: 1.33% (C+ grade)
Oregon inventionINDEX December 2025: 1.33% (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).
Oregon inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| December 2025 | 1.33% |
| Nov 25 | 1.39% |
| Oct 25 | 1.83% |
| Sep 25 | 2.45% |
| Aug 25 | 2.13% |
| Jul 25 | 2.04% |
| Jun 25 | 1.60% |
| May 25 | 1.63% |
| Apr 25 | 2.65% |
| Mar 25 | 1.75% |
| Feb 25 | 2.40% |
| Jan 25 | 1.58% |
| Dec 24 | 2.40% |
The December 2025 score of 1.33% with a C+ rating represents a significant cooling period for the Oregon inventionINDEX compared to the momentum seen earlier in the year. While the index started 2025 with a respectable B- and reached a peak of 2.65% in April, the year concluded with a noticeable downward trajectory. This current standing is significantly lower than the 2.40% recorded in December 2024, suggesting a year-over-year contraction in innovation activity or investment sentiment. The index has effectively returned to levels seen during the slower periods of late 2021 and early 2022, indicating a phase of stabilization or caution within the regional ecosystem.
Reviewing the five-year horizon reveals a volatile yet resilient landscape for Oregon’s innovation metrics. The standout anomaly in the data occurred in October 2023, where the score surged to an unprecedented 7.06%, earning an A+ rating. Conversely, the market experienced a sharp correction in January 2023, dipping into negative territory at -0.55% with a failing grade. Excluding these outliers, the index typically oscillates between the 1.5% and 2.5% range. The current C+ rating, while not at a historical nadir, sits below the 60-month median and reflects a departure from the high-performing streaks observed during 2024 when scores frequently reached the A-range.
A higher grade, particularly those in the A and A+ categories, serves as a powerful indicator of a robust and thriving innovation environment. When the index reaches these heights, it typically correlates with increased patent filings, higher venture capital inflows, and a surge in entrepreneurial activity. These periods of high performance suggest that the state is effectively converting research and development into tangible economic assets. Such scores attract top-tier talent and encourage established firms to expand their local operations, creating a virtuous cycle of growth that strengthens the state’s competitive edge on a national scale.
Conversely, a lower score or a declining rating like the current C+ carries several negative implications for the regional economy. Persistent low grades can signal a stagnation in creative output or a lack of necessary resources to support new ventures. When the score drops, it often reflects a more risk-averse environment where investors may hesitate and startups might struggle to find the support needed to scale. Furthermore, a failure to maintain a B-range average could lead to a loss of momentum, potentially allowing neighboring regions to capture a larger share of the innovation market. Addressing the factors behind these lower scores is essential to prevent a long-term erosion of the state’s technological and economic leadership.
Discussion:
In December, the Oregon inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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.
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What is the R&D Tax Credit?
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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