VIRGINIA INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.83% (A+ grade)

Virginia inventionINDEX November 2025: 1.83% (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 Scores – Last 12 months

The November 2025 Virginia inventionINDEX score of 1.83% maintains a prestigious A+ rating, reflecting a sustained period of high performance within the state’s innovation landscape. While this figure represents a slight decrease from the 1.95% recorded in October 2025, it remains comfortably above the long-term average. When viewed against the historical backdrop, the current score shows a significant improvement over the 1.66% seen in November 2024. This suggests that while there is some month-to-month variation, the general trajectory of Virginia’s inventive capacity is trending toward greater stability and strength compared to the same period in previous years.

A comprehensive review of the last sixty months reveals a dynamic history for the index, marked by both exceptional peaks and notable troughs. The zenith of this period occurred in December 2020 with a score of 2.21%, a benchmark that the state has approached but not yet surpassed in recent years. In contrast, the lowest point was recorded in December 2021 at 1.29%, resulting in a B rating. Since that low point, the index has shown an impressive recovery, maintaining a consistent A or A+ rating for nearly three years. This trend highlights a maturing ecosystem that is increasingly capable of weathering broader economic shifts without compromising its creative output.

The persistence of high scores and top-tier ratings provides a powerful catalyst for economic and intellectual growth across the Commonwealth. A higher grade on the Virginia inventionINDEX serves as a beacon for venture capital and institutional investment, indicating fertile ground for the commercialization of new ideas. These positive outcomes extend to the labor market, where a robust innovation score is often a precursor to the creation of high-salary technical positions and the retention of specialized talent. By maintaining an A+ rating, Virginia reinforces its reputation as a leader in research and development, which helps to attract global partnerships and foster a culture of continuous technological advancement.

Conversely, any downward movement toward lower scores presents serious challenges to the state’s competitive edge. A lower index score typically points to a reduction in the rate of patenting activity or a contraction in the resources available for research, which can stall the progress of emerging industries. If the score remains depressed for an extended period, it risks creating an environment where innovators look elsewhere for more supportive infrastructure, potentially leading to a loss of vital intellectual capital. Therefore, monitoring these shifts is essential for identifying when intervention or additional support is needed to prevent a temporary dip from becoming a long-term decline in the state’s economic vitality.

Discussion:

In November, the Virginia inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 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 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.