WASHINGTON INVENTIONINDEX | APRIL 2025

April 2025: 0.96% (C- grade)

Washington inventionINDEX April 2025: 0.96% (C- 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).

Washington inventionINDEX Score Analysis: Last 6 Months

Over the last six months, the Washington inventionINDEX score has shown a clear downward trend, falling from 1.36% in December 2024 to 0.96% in April 2025. This marks a 0.40 percentage point drop, signaling a potential slowdown in innovation-related activities. The highest point during this period was December 2024, while the most recent data reflects the lowest performance, suggesting either seasonal stagnation or a deeper systemic issue.

A higher inventionINDEX score typically correlates with an increase in research output, patent filings, and startup activity, all of which contribute to economic growth and regional competitiveness. For instance, the December 2024 peak could indicate the culmination of year-end R&D initiatives or successful funding cycles. This period likely saw increased collaboration among academic institutions and private firms, boosting Washington’s innovation profile.

Conversely, the steady decline since the beginning of 2025 raises concerns about reduced investment or waning momentum in innovation sectors. A lower score can imply diminished venture capital interest, layoffs in tech industries, or slower intellectual property generation. These shifts could weaken the state’s position as a leading hub for innovation if the trend continues.

Monitoring and addressing this dip is critical. Targeted policy interventions, increased support for early-stage ventures, and improved research incentives may help reverse this decline and restore upward movement in the inventionINDEX.

Discussion:

In April, the Washington inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast 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 Washington office provides R&D tax credit consulting and advisory services to Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Federal Way, and Yakima.

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.