WISCONSIN INVENTIONINDEX | AUGUST 2025

August 2025: 1.51% (A grade)

Wisconsin inventionINDEX

Wisconsin inventionINDEX August 2025: 1.51% (A 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).

Wisconsin inventionINDEX Scores – Last 12 months

 

Month inventionINDEX Score
August 2025 1.51%
Jul 25 2.48%
Jun 25 1.48%
May 25 2.00%
Apr 25 2.01%
Mar 25 1.75%
Feb 25 1.41%
Jan 25 1.67%
Dec 24 1.98%
Nov 24 1.29%
Oct 24 2.14%
Sep 24 1.76%
Aug 24 1.49%

The Wisconsin inventionINDEX for August 2025 stands at 1.51%, earning an “A” rating. This score, while positive, is marginally lower than the previous month’s 2.48% (A+) and is comparable to August 2024’s 1.49% (A). Over the last 12 months, the state has generally maintained strong “A” or “A+” ratings, with the lowest score being 1.29% (B) in November 2024. This consistent performance indicates a sustained positive sentiment regarding innovation output in Wisconsin.

Analyzing the past 60 months reveals periods of both stronger and weaker performance. Notably, May 2023 saw the highest score at 3.69% (A+), indicating a peak in innovation vitality. Conversely, June 2023 and July 2022 both registered negative scores of -0.53% (F) and -0.56% (F) respectively. These instances of negative sentiment highlight periods where the growth in patent production did not keep pace with GDP growth, suggesting potential economic headwinds or reduced innovative activity.

A higher inventionINDEX score and a favorable grade, such as the “A” or “A+” ratings frequently observed for Wisconsin, signify a robust and dynamic innovation ecosystem. This positive sentiment suggests that the state’s economy is not only growing but is also fostering an environment conducive to intellectual property creation. Such conditions can attract investment, stimulate job growth, and enhance overall economic resilience, positioning the state advantageously for future economic stability and expansion.

Conversely, a lower inventionINDEX score, particularly those falling below the “C” grade threshold, indicates a negative outlook. Scores like the “F” ratings seen in June 2023 and July 2022 point to potential challenges in innovation output relative to economic growth. These periods could reflect a slowdown in research and development, a decrease in patent filings, or broader economic contractions that dampen innovative efforts. Sustained lower scores could suggest a weakening competitive edge and potential difficulties in long-term economic recovery and growth.

Discussion:

In August, the Wisconsin inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 Wisconsin office provides R&D tax credit consulting and advisory services to Milwaukee, Madison, Green Bay, Kenosha, Racine, Appleton, Waukesha, Eau Claire, Oshkosh, and Janesville.

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.

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The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.

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