WASHINGTON INVENTION INDEX – MARCH 2025
The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth.
Washington Invention Index March 2025: 1.19% (C+ grade)
Washington Invention Index over the last year:
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 Invention Index Scores
| Month | Invention Index Score |
|---|---|
| September 2024 | 1.23% (C+) |
| October 2024 | 1.56% (B+) |
| November 2024 | 1.12% (C) |
| December 2024 | 1.36% (B-) |
| January 2025 | 1.33% (B-) |
| February 2025 | 1.24% (B-) |
| March 2025 | 1.19% (C+) |
Analysis
Comparison with Previous Months:
The March 2025 score of 1.19% (C+) reflects a continued decrease from February’s 1.24% (B-). This marks the third consecutive month of decline, following January’s 1.33% and December’s peak of 1.36%. The most significant drop occurred between October and November—a sharp 0.44% decrease—indicating a sudden dip in inventive activity.
Long-Term Trends:
Over the seven-month period, the data reveals a fluctuating trend. Scores rose from September (1.23%) to a high in October (1.56%), then dropped sharply in November (1.12%). A moderate recovery followed in December and January, but scores declined again in February and March. This up-and-down pattern suggests inconsistent inventive output rather than a steady trend.
Significant Changes:
October 2024 stands out with the highest score (1.56%, B+), marking a peak in inventive activity. The following month, November, saw the largest single-month decline. December reversed some of that loss, while the early months of 2025 showed a gradual but steady decrease.
Contextualizing the Data:
March 2025’s score is closer to September’s than to the mid-period highs. This downward trend could be part of a recurring cycle, but the three-month decline from January suggests a possible shift. Whether this is a short-term fluctuation or the start of a larger trend will depend on future data.
Discussion:
In March, the Washington Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.
Learn more about the Invention Index here.
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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
Who We Are:
Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.
Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.
