WEST VIRGINIA INVENTIONINDEX | APRIL 2025

April 2025: 1.03% (C grade)

West Virginia inventionINDEX April 2025: 1.03% (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).

West Virginia inventionINDEX – Six-Month Comparative Analysis

Over the past six months, the West Virginia inventionINDEX has shown relative stability with minor fluctuations. April and March 2025 both held steady at 1.03%, mirroring December and November 2024. February 2025 saw a slight increase to 1.24%, suggesting a brief uptick in inventive activity or research output. Conversely, January 2025 dipped to 0.83%, the lowest value in this period, highlighting a potential short-term slowdown in innovation-related metrics.

The consistent scores above 1.0%—seen in four of the six months—indicate a solid baseline for innovation in the region. A higher inventionINDEX score is a positive indicator of increased patent filings, intellectual property development, and potentially stronger university-industry collaborations. Such metrics can attract investment, support economic diversification, and strengthen West Virginia’s reputation in research and development.

However, the dip to 0.83% in January signals a possible disruption or seasonal decline in inventive activity. Lower scores can be symptomatic of reduced funding, talent outflow, or diminished institutional engagement in R&D. If such a pattern persists, it may weaken the state’s competitiveness and its ability to retain innovation-driven talent and businesses.

Maintaining or increasing the inventionINDEX is crucial for sustainable economic growth. West Virginia’s current consistency offers a platform to build on, but continuous monitoring and strategic support are essential to prevent stagnation and foster long-term innovation momentum.

Discussion:

In April, the West Virginia inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar 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 West Virginia office provides R&D tax credit consulting and advisory services to Charleston, Huntington, Morgantown, Parkersburg, and Wheeling.

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.