WASHINGTON INVENTIONINDEX | MAY 2025

May 2025: 1.25% (B- grade)

Washington inventionINDEX May 2025: 1.25% (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).

The Washington inventionINDEX Score for May 2025 rose to 1.25%, marking a steady improvement over April’s 0.96%. This increase signals a return to stronger innovation performance after a brief dip last month. When compared to the 12-month average of approximately 1.26%, May 2025’s score aligns closely with broader yearly trends, indicating a stable innovation environment. It also reflects resilience following fluctuations earlier in the year and highlights a continued commitment to research, patent activity, and technological advancement in the region.

Looking back over the last year, October 2024 holds the highest recorded score at 1.56%, while April 2025’s 0.96% stands as the lowest. These fluctuations suggest a moderate but notable level of volatility in the innovation landscape. Still, May’s rebound demonstrates an encouraging upward correction. While not the highest on record, the May 2025 score positions Washington within a competitive innovation range, restoring momentum at a time when policy makers and industry stakeholders are closely monitoring innovation health.

A higher inventionINDEX Score generally reflects positive outcomes, such as increased patent filings, higher R&D output, and greater commercial potential for new technologies. For local economies, this often translates into more robust job creation in tech sectors, stronger attraction of venture capital, and greater interest from global partners. Additionally, universities and research centers benefit from higher collaboration prospects and funding opportunities when the innovation climate is strong.

Conversely, a lower score—like that seen in April 2025—can be an early warning sign of diminishing activity or slowed growth in inventive output. It may indicate lagging investment in innovation infrastructure, reduced research funding, or challenges in converting ideas into marketable IP. If sustained over time, a lower trend can erode competitive positioning and diminish confidence among investors and corporate partners. Therefore, the recovery seen in May is a timely and reassuring signal for stakeholders watching Washington’s innovation trajectory.

Discussion:

In May, the Washington inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed 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 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.