June 2025: 1.48% (A grade)

Wisconsin inventionINDEX June 2025: 1.48% (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’s inventionINDEX score for June 2025 stands at 1.48%, marking a noticeable decline from the previous month’s 2.00% and continuing a downward trend from April’s 2.01%. While still within a historically moderate range, this drop signals a slowdown in the state’s pace of innovation compared to earlier months in 2025. The June figure is also lower than the same month in 2024, which recorded a higher 1.93%, suggesting a year-over-year deceleration in inventive activity.

Looking at the broader context, the state’s inventionINDEX peaked over the past 12 months in October 2024 with a score of 2.14%, representing a high point of innovation intensity. Since then, the index has fluctuated, with periods of sustained strength-such as December 2024 (1.98%) and January 2025 (1.67%)-followed by gradual cooling in the subsequent months. The June 2025 score reflects the lowest point since November 2024, which had dropped to 1.29%, highlighting a return to the lower bounds of the recent performance spectrum.

Higher inventionINDEX scores typically indicate a surge in intellectual property filings, R&D output, and innovation-driven economic activity. For Wisconsin, elevated scores often correlate with increased investment in university research, startup growth, and the state’s visibility in national innovation rankings. Such outcomes can attract venture capital, talent retention, and collaboration opportunities, further strengthening the regional innovation ecosystem.

Conversely, a decline in the index-as seen in June-may signal reduced momentum in patent generation or a slowdown in research commercialization. If sustained, this pattern can lead to diminished competitiveness, fewer opportunities for local entrepreneurs, and potential disinterest from external investors. While one month does not define a trend, continued decreases may require strategic responses from public institutions, academic centers, and private sector stakeholders to reenergize the state’s innovation pipeline.

Discussion:

In June, 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 similar 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 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.

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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.

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