VERMONT INVENTIONINDEX | MAY 2025
May 2025: 1.60% (A+ grade)
Vermont inventionINDEX May 2025: 1.60% (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 Vermont inventionINDEX Score for May 2025 stands at 1.60%, which represents a modest increase from the previous month’s score of 1.13% in April. This improvement signals a rebound in innovation activity after a brief decline. Compared to the broader trend of the past year, Vermont’s current performance is returning to its typical mid-range levels, reinforcing its historical consistency. When examining the year-long trajectory, scores have fluctuated within a relatively narrow band, suggesting a steady climate for innovation, though with periodic dips and recoveries.
A higher inventionINDEX Score, such as the 2.00% mark achieved in January 2025, often correlates with increased patent filings, research breakthroughs, and elevated entrepreneurial activity. This uptick is generally indicative of a supportive environment for innovators and companies pushing technological boundaries. For Vermont, sustained higher scores can translate into improved regional competitiveness, potential job creation in high-tech sectors, and greater investment interest from external markets. Policymakers and economic developers typically view these peaks as signs of effective innovation ecosystems and successful commercialization pipelines.
Conversely, lower scores — such as 0.80% seen in November 2024 — raise concerns about reduced innovation output or bottlenecks in the patenting process. These declines may be attributed to factors such as limited R&D funding, talent outmigration, or reduced university and industry collaboration. For Vermont, maintaining a score below the national average could signal a need for targeted policy interventions to stimulate innovation, such as tax incentives, grants, or improved infrastructure to support inventors and startups. Extended periods of lower scores may also result in missed economic opportunities and a diminished presence in emerging technologies.
Overall, Vermont’s inventionINDEX trend reveals a stable, though not exceptionally high, level of innovation activity over the past 12 months. The score’s return to 1.60% in May 2025 is a positive sign, particularly after April’s dip. However, to ensure resilience and long-term growth, the state may benefit from examining the conditions behind score fluctuations and identifying strategies to sustain upward momentum. Building on strengths during high-performing months and addressing weaknesses during slumps will be crucial to enhancing Vermont’s innovation landscape.
Discussion:
In May, the Vermont 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 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 Vermont office provides R&D tax credit consulting and advisory services to Burlington, South Burlington, Rutland, Barre, and Montpelier.
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.
