VERMONT INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.47% (A+ grade)

Vermont inventionINDEX September 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 September 2025 stands at 1.47%, earning an A+ grade. This score, while positive, is consistent with the preceding two months of August and July 2025. When compared to the previous year, specifically September 2024 at 1.60%, there is a slight decrease. Looking further back, scores in late 2023, such as October and September, were notably higher at 2.60%, indicating a gradual downward trend over the longer term, despite the current positive sentiment.

A higher inventionINDEX score and a favorable grade, such as an A+, signify robust innovation output, which is generally a strong indicator of economic health and future growth potential. Such positive trends suggest that the state is effectively fostering an environment conducive to patent production and, by extension, economic development. This can attract investment, stimulate job creation, and enhance overall prosperity, positioning the state advantageously for economic recovery and sustained progress.

Conversely, a lower inventionINDEX score or a less favorable grade, like the D- seen in November 2024 (0.80%) or September 2022 (0.60%) which received an F, suggests a contraction in innovation. This can have several negative implications, including a slower economic recovery, reduced competitiveness, and a potential decline in research and development activities. Such periods may reflect underlying economic challenges, such as company closures, workforce reductions, or limitations in R\&D capabilities, which can hinder long-term economic resilience.

While the September 2025 score maintains a positive outlook, the historical data reveals fluctuations and a broader downward trajectory from the higher scores observed in 2023. This suggests a need for continued monitoring and strategic initiatives to support and enhance innovation. Understanding these trends allows for informed decision-making to mitigate potential negative impacts and capitalize on opportunities to strengthen Vermont’s economic landscape through sustained innovation.

Discussion:

In September, 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 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.