RHODE ISLAND INVENTIONINDEX | MAY 2025
May 2025: 1.84% (A- grade)
Rhode Island inventionINDEX May 2025: 1.84% (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 May 2025 inventionINDEX Score for Rhode Island stands at 1.84%, reflecting a modest uptick from the 1.68% recorded in January and February earlier this year, though slightly below April’s stronger performance of 2.18%. While the latest figure does not mark a new high, it suggests a stable and sustained period of inventive activity. Over the past twelve months, the index has generally fluctuated between 1.43% and 2.93%, indicating moderate volatility. The current score situates itself near the average range, signaling a return to steady productivity after the more pronounced highs and lows observed in the past year.
Looking at historical performance, the peak of 2.93% in July 2024 stands out as an outlier, possibly driven by a burst of seasonal innovation or the culmination of funding cycles. Since then, the inventionINDEX has not reached such heights, but it has remained mostly above 1.5%, suggesting that Rhode Island’s innovation ecosystem has maintained a consistent, if measured, level of output. May 2025’s score is exactly equal to that of September 2024 and only slightly higher than several months during late 2024, showing that the region continues to support innovation with a relatively stable base.
A higher inventionINDEX Score often correlates with increased patent filings, R&D activity, and university-industry collaboration—key indicators of a thriving innovation economy. It can also enhance the state’s reputation as a hub for cutting-edge development, attracting investment and talent. In turn, this strengthens local job markets and encourages the formation of startups. The recent scores in the 2% range, particularly those in October 2024 and April 2025, highlight moments where these positive outcomes may have been particularly strong.
Conversely, when the score dips—as it did to 1.43% in March 2025—it may reflect reduced research output, delays in technology transfer, or lulls in commercialization. Persistent low readings could signal underlying challenges, such as funding shortages, regulatory bottlenecks, or talent attrition. While May’s reading does not raise immediate concern, it underscores the importance of monitoring trends over time. Stakeholders should remain attentive to the broader ecosystem to ensure that Rhode Island’s innovation capacity is not only maintained but continually expanded.
Discussion:
In May, the Rhode Island inventionINDEX scored a positive sentiment which was lower than the previous year’s average but 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 Rhode Island office provides R&D tax credit consulting and advisory services to Providence, Warwick, Cranston, Pawtucket, and East Providence.
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.
