WISCONSIN INVENTIONINDEX | MAY 2025
May 2025: 2.00% (A+ grade)
Wisconsin inventionINDEX May 2025: 2.00% (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).
Over the past 12 months, the Wisconsin inventionINDEX has shown notable fluctuations, with the most recent figure for May 2025 reaching 2.00%. This marks an improvement over April’s 2.01%, reversing a slight dip and continuing a generally encouraging trend from earlier months. Compared to the same period a year ago—May 2024’s score of 1.55%—the latest figure represents a significant year-over-year increase, suggesting that innovation activity in Wisconsin is gaining stronger momentum. The overall trajectory highlights the state’s increasing emphasis on research output, patent filings, and innovation-based economic growth.
This uptick in the inventionINDEX is particularly meaningful when viewed in the context of the mid-period dip observed in late 2024. For example, scores such as November’s 1.29% and August’s 1.49% reflect a brief decline, likely due to seasonal or fiscal cycles in R&D investment. However, the rebound beginning in December 2024 with a 1.98% score indicates that this lull was temporary. Sustained performance above 1.90% from December through March supports the narrative that innovation infrastructures—such as university partnerships, incubator activity, and corporate R&D—are continuing to yield measurable outputs.
A higher inventionINDEX score generally signals positive outcomes for the state’s innovation ecosystem. It reflects increased patent filings, heightened research and development activity, and greater engagement from both academic and private-sector innovators. This momentum can attract investment, spur tech-based job creation, and enhance Wisconsin’s competitive positioning on a national scale. Moreover, it can influence policymaking and funding allocation, leading to expanded support for STEM education, startup accelerators, and infrastructure.
Conversely, lower scores, like those recorded in November and August, may raise concerns about innovation stagnation or resource constraints. If such dips were to persist or worsen, it could point to underlying challenges such as reduced funding, talent shortages, or policy barriers. Sustained low performance might deter external investment or suggest weakening industry-academic collaboration. Therefore, maintaining and building upon recent gains is crucial to ensuring that Wisconsin continues to foster a thriving, resilient, and forward-looking innovation economy.
Discussion:
In May, the Wisconsin inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable 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.
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.
