FLORIDA INVENTIONINDEX | JANUARY 2026

January 2026: 2.50% (B+ grade)

Florida inventionINDEX January 2026: 2.50% (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).

Florida inventionINDEX Scores – Last 12 months

The Florida inventionINDEX for January 2026 reached a score of 2.50% with a B+ rating, marking a notable decline from the robust performance observed at the end of 2025. In December 2024, the index stood at 3.90% with an A+ rating, concluding a year characterized by high-tier performance. This recent shift to a B+ rating indicates a cooling period in the state’s innovation metrics, as the current score is significantly lower than the 60-month average. While a B+ remains a respectable grade, the transition from a consistent string of A+ ratings suggests a temporary deceleration in the momentum that defined much of the previous two years.

A longitudinal review of the last five years reveals that the inventionINDEX is subject to significant volatility, with January 2026 representing one of the lower points in the cycle. The index saw its historical peak in October 2023, reaching an extraordinary 11.18%, followed by several months of sustained strength above the 4% mark in 2024 and 2025. Conversely, the current 2.50% score is reminiscent of early 2022 and 2021, when scores dipped as low as 1.94%. This historical context suggests that while the current dip is a departure from the high-growth phase of 2025, it follows a pattern of periodic adjustments that often precede new phases of expansion.

Maintaining a higher grade, particularly in the A+ range, yields substantial benefits for the Florida innovation ecosystem. High scores typically signal a fertile environment for intellectual property development, attracting venture capital and fostering a climate where entrepreneurs feel confident in launching new ventures. When the index remains elevated, it often reflects a synergy between academic research, private investment, and supportive state policies. This environment not only retains local talent but also serves as a magnet for global innovators looking for a stable and high-performing market to scale their inventions.

In contrast, a lower score and a trailing grade carry negative implications that warrant close monitoring. A slide into the B territory can indicate a tightening of resources, a slowdown in patent filings, or a decrease in the commercialization of new technologies. If this downward trend persists, it may lead to reduced investor confidence and a potential “brain drain” as innovators seek more dynamic environments. The shift from a 3.90% A+ in December to a 2.50% B+ in January serves as a critical indicator for stakeholders to reassess the current barriers to growth and implement strategies to prevent the index from returning to the historic lows seen at the beginning of the 60-month period.

Discussion:

In January, the Florida 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 Florida office provides R&D tax credit consulting and advisory services to Jacksonville, Miami, Tampa, Orlando, St. Petersburg, Hialeah, Tallahassee, Fort Lauderdale, Port St. Lucie, Cape Coral, Pembroke Pines, Hollywood, Miramar, Gainesville, Coral Springs, Clearwater, Palm Bay, Miami Gardens, West Palm Beach and Lakeland.

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.