WASHINGTON INVENTIONINDEX | DECEMBER 2025

December 2025: 1.36% (B- grade)

Washington inventionINDEX December 2025: 1.36% (B- 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 Scores – Last 12 months

The Washington inventionINDEX for December 2025 stands at 1.36 percent with a rating of B-minus, reflecting a stable position compared to the previous year. This specific figure is identical to the score recorded in December 2024, suggesting a return to a baseline level of activity after a year characterized by significant fluctuations. While the current rating sits slightly below the historical mean of approximately 1.42 percent, it represents a notable recovery from the lower performance levels observed earlier in the spring. This stabilization indicates that the regional innovation ecosystem has regained its footing, maintaining a consistent output as it transitions into the new calendar year.

When examining the broader sixty-month horizon, the index exhibits a pattern of periodic peaks followed by corrective phases. The most prominent historical high occurred in April 2022, when the score reached a remarkable 2.28 percent with an A-plus rating. In contrast, the index faced its most challenging period in April 2025, dipping to a low of 0.96 percent and a C-minus rating. Comparing the current 1.36 percent to these extremes highlights that the present environment is one of moderate health, lacking the explosive growth seen in mid-2022 but successfully avoiding the stagnation that threatened the index only eight months prior.

Achieving a higher grade, particularly in the A-range, yields substantial benefits for the regional economy and its stakeholders. High scores typically correlate with an acceleration in research and development, increased venture capital inflows, and a heightened competitive advantage on a global scale. When the index approaches the A-plus threshold, it signifies a robust culture of intellectual property creation and commercialization that attracts top-tier talent and fosters entrepreneurial spirit. These periods of high performance create a virtuous cycle where success breeds further investment, leading to long-term economic vitality and technological leadership.

Conversely, a lower score or a downward trend toward the C-range presents several negative implications for the innovation landscape. Such a decline often suggests a slowdown in patent filings, a reduced appetite for risk among investors, and potential systemic inefficiencies within the creative pipeline. Sustained low ratings can lead to a loss of momentum, where talented individuals and emerging startups may seek more favorable environments in other jurisdictions. Addressing these dips requires strategic intervention to ensure that the infrastructure supporting new ideas remains resilient against economic headwinds, ultimately preserving the region’s capacity for future breakthroughs.

Discussion:

In December, the Washington inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 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 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.