TEXAS INVENTIONINDEX | APRIL 2025
April 2025: 1.22% (A- grade)
Texas inventionINDEX April 2025: 1.22% (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).
Texas inventionINDEX 6-Month Analysis: Trends and Implications
| Month | inventionINDEX Score |
|---|---|
| April 2025 | 1.22% |
| March 2025 | 1.10% |
| February 2025 | 1.15% |
| January 2025 | 1.27% |
| December 2024 | 1.16% |
| November 2024 | 1.10% |
Over the past six months, the Texas inventionINDEX has shown moderate fluctuations, with scores ranging from 1.10% to 1.27%. The highest value was recorded in January 2025 at 1.27%, followed by a slight drop in the subsequent months. April 2025 closed with a score of 1.22%, representing a recovery from the March dip of 1.10%. While not the highest in the series, April’s performance suggests a positive rebound.
A higher inventionINDEX typically indicates robust innovation activity, enhanced patent generation, and a healthy intellectual property climate. The months with scores above 1.20%, including January and April, suggest strong R&D output and potentially increased investment interest in tech-driven sectors. These periods are often associated with job growth in STEM fields and enhanced academic-industry collaboration.
Conversely, lower scores such as November 2024 and March 2025 (both at 1.10%) could reflect slowdowns in invention disclosures or patent filings. This may stem from funding constraints, talent shortages, or lagging commercialization efforts. Persistent low scores may dampen investor confidence and impact Texas’s competitive position in innovation ecosystems nationally.
Overall, while fluctuations are expected, the consistent return to values above 1.20% signals resilience. Policymakers and innovation stakeholders should continue monitoring monthly shifts while reinforcing support mechanisms that elevate invention productivity across Texas.
Discussion:
In April, the Texas 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 Texas office provides R&D tax credit consulting and advisory services to Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Grand Prairie, Brownsville, McKinney, Frisco, Pasadena and Mesquite.
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.
