VIRGINIA INVENTIONINDEX | APRIL 2025

April 2025: 1.85% (A+ grade)

Virginia inventionINDEX April 2025: 1.85% (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).

Virginia inventionINDEX Score: 6-Month Trend Analysis

Over the past six months, the Virginia inventionINDEX score has demonstrated modest fluctuations, peaking at 2.15% in January 2025 and hitting a low of 1.66% in November 2024. The most recent reading, April 2025 at 1.85%, marks a slight rebound from March’s 1.68% and is slightly above the six-month average of 1.84%. This pattern reflects a relatively stable innovation climate with occasional surges, notably in January.

A higher inventionINDEX score typically signifies a stronger regional capacity for innovation, suggesting favorable conditions for patent activity, research investments, and technology-driven economic growth. The January peak could correspond with increased R&D funding or successful commercialization efforts, attracting investor attention and boosting regional competitiveness.

Conversely, dips in the index, such as those in November 2024 and March 2025, could indicate slowed innovation output or reduced institutional support. These declines may stem from regulatory shifts, funding constraints, or seasonal slowdowns, potentially signaling risk for innovation-dependent industries and stakeholders.

Sustaining a consistent upward trajectory in the inventionINDEX is crucial. While the April 2025 score suggests recovery, stakeholders must remain proactive in nurturing innovation ecosystems to avoid volatility and ensure Virginia remains a leader in technological advancement.

Discussion:

In April, the Virginia inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward 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 Virginia office provides R&D tax credit consulting and advisory services to Virginia Beach, Norfolk, Chesapeake, Richmond, Newport News, Alexandria, Hampton, Roanoke, Portsmouth, and Suffolk.

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.