VERMONT INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.47% (A+ grade)

Vermont inventionINDEX November 2025: 1.47% (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).

Vermont inventionINDEX Scores – Last 12 months

The Vermont inventionINDEX for November 2025 reached a score of 1.47 percent, earning a top-tier A+ rating. This latest figure represents a significant recovery from the previous month of October 2025, when the index dipped to 1.00 percent with a C- rating. The current score aligns the state with the high-performance levels observed throughout much of the summer of 2025, where the index maintained a consistent 1.47 percent mark. This bounce back suggests that the October downturn was a temporary anomaly rather than a lasting trend, as the index has returned to the robust levels that characterized the earlier part of the year.

A broader examination of the historical table for the last 60 months reveals a narrative of resilience punctuated by periods of exceptional growth. The peak of the five-year period occurred in February 2023, when the index hit a high of 3.00 percent. Conversely, the most challenging period was in September 2022, when the score plummeted to 0.60 percent, resulting in a failing grade. Since that time, the Vermont inventionINDEX has largely stabilized, frequently maintaining scores above the 1.50 percent threshold. While there have been sporadic drops, such as the 0.80 percent seen in November 2024, the general trajectory over the last five years indicates a maturing innovation ecosystem that is increasingly capable of sustaining high ratings.

The positive outcomes associated with a higher grade like the current A+ are substantial for the local economy. A score above 1.40 percent typically signals a healthy environment for intellectual property development, research and development investments, and entrepreneurial activity. When the rating is high, it fosters an atmosphere of confidence that can attract venture capital and encourage established industries to expand their creative output. These periods of high scores often correlate with a surge in patent filings and a more competitive workforce, positioning the region as a leader in the knowledge economy and ensuring long-term technological relevance.

On the other hand, lower scores and grades carry negative implications that warrant close monitoring. When the index falls toward the 1.00 percent mark or lower, as it did in late 2024 and October 2025, it may indicate a stagnation in creative output or a lack of necessary resources for innovators. Lower ratings can lead to reduced investor interest and a potential “brain drain” if local talent feels that the environment no longer supports high-level invention. These troughs often necessitate a review of policy or funding to ensure that the infrastructure supporting innovation remains intact. Maintaining the current upward momentum is therefore essential for avoiding the risks associated with the volatility seen in years past.

Discussion:

In November, the Vermont 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 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.