PENNSYLVANIA INVENTIONINDEX | APRIL 2025

April 2025: 1.15% (A- grade)

Pennsylvania inventionINDEX April 2025: 1.15% (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).

Six-Month Analysis of the Pennsylvania inventionINDEX Score

Over the past six months, the Pennsylvania inventionINDEX Score has shown modest fluctuations, ranging from a low of 1.00% in November 2024 to a recent high of 1.15% in April 2025. The index has gradually recovered from a dip in late 2024, suggesting a resurgence in innovation-related activities.

The upward trajectory beginning in November 2024 indicates a strengthening innovation environment in Pennsylvania. Higher inventionINDEX scores typically correlate with increased patent filings, stronger R&D investment, and greater institutional support for inventors. This progress is encouraging, especially for industries relying on technological advancements to remain competitive.

On the flip side, periods of lower scores—such as the 1.00% in November—may signal reduced innovation output, potentially due to funding constraints, economic uncertainty, or shifting policy priorities. These dips can affect job creation in tech-driven sectors and reduce Pennsylvania’s attractiveness as a hub for innovators.

Overall, the recent uptick in the index reflects a positive momentum. If sustained, this trend can enhance Pennsylvania’s national standing in innovation and stimulate economic growth through commercialized technologies and startups.

Discussion:

In April, the Pennsylvania 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 Pennsylvania office provides R&D tax credit consulting and advisory services to Philadelphia, Pittsburgh, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Harrisburg, Altoona, York, State College, Wilkes Barre, Chester, Williamsport, Easton, Lebanon, Hazleton, New Castle and Johnstown.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.