PENNSYLVANIA INVENTIONINDEX | MAY 2025
May 2025: 1.19% (A+ grade)
Pennsylvania inventionINDEX May 2025: 1.19% (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).
The Pennsylvania inventionINDEX Score for May 2025 stands at 1.19%, continuing a trend of moderate growth from the previous month’s 1.15%. This slight increase suggests a stable innovation climate within the state, especially when compared to the recent past. Over the last 12 months, the score has fluctuated within a relatively narrow band—between a low of 1.00% in November 2024 and a high of 1.20% in October 2024. May 2025 now ties with July 2024 for the second-highest score in this period, positioning Pennsylvania among the more consistently innovative states during the past year.
A higher inventionINDEX Score typically indicates increased patent activity, heightened R&D investments, or a more robust pipeline of technological development. For Pennsylvania, the upward momentum in recent months could reflect strategic policy efforts to boost innovation ecosystems, including public-private partnerships, university-led research initiatives, or favorable legislation supporting inventors and startups. The consistent rebound from the 1.00% dip in November 2024 also suggests that the state has managed to regain footing and maintain a level of inventive output that supports long-term economic vitality.
On the other hand, periods where the inventionINDEX Score dips—such as November 2024—raise concerns about underlying structural or economic issues. These can include reduced funding for research institutions, fewer patent filings from startups, or broader economic constraints limiting innovation. A lower score might indicate temporary slowdowns, but repeated declines over multiple months would be a red flag signaling the need for policy interventions. Fortunately, Pennsylvania appears to have avoided sustained downturns, maintaining a generally positive trajectory.
Overall, the data for the past year suggests that Pennsylvania has demonstrated resilience and adaptability in its innovation landscape. The May 2025 score of 1.19% reflects a return to near-peak performance, underscoring the state’s ability to remain competitive in fostering intellectual property and new technologies. Sustaining or surpassing this level will require ongoing investment in education, research, and entrepreneurial support, ensuring the inventionINDEX Score continues to be a reliable indicator of a thriving innovation economy.
Discussion:
In May, 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 if you would like to learn more about R&D tax credit opportunities.
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