MISSOURI INVENTIONINDEX | JANUARY 2026

January 2026: 1.03% (C grade)

Missouri inventionINDEX January 2026: 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).

Missouri inventionINDEX Scores – Last 12 months

The January 2026 inventionINDEX score for Missouri stands at 1.03%, resulting in a rating of C. This latest figure represents a notable decline from the final quarter of 2025, where the index maintained a B range before slipping below the 1.10% threshold. When viewed against the broader five-year trajectory, the current score resides in the lower quartile of performance, signaling a period of relative cooling in the state’s innovation landscape compared to the robust activity observed just six months prior.

Looking further back at the historical data, the index has demonstrated significant volatility over the last 60 months. In August 2022 and early 2021, the score peaked at 1.32% with an A+ rating, representing the high-water mark for the period. The current C rating is reminiscent of other historical low points, such as the 0.99% recorded in December 2022 and July 2021. These cycles suggest that while Missouri is capable of reaching elite levels of inventive output, the momentum is susceptible to periodic pullbacks that require careful monitoring by economic stakeholders.

A higher grade on the inventionINDEX, such as the A+ ratings seen during the summer of 2025 when scores reached 1.30%, carries several positive implications for the regional economy. High scores generally correlate with increased intellectual property filings, a surge in venture capital interest, and a more dynamic labor market for high-tech roles. When the index sits comfortably above the 1.20% level, it indicates that the ecosystem for research and development is thriving, fostering an environment where new ideas can be efficiently commercialized to drive long-term prosperity and industrial growth.

Conversely, a lower score like the current 1.03% may indicate underlying challenges within the state’s creative and industrial sectors. Persistent C ratings can reflect a slowdown in startup formation or a reduction in the capital allocated to emerging technologies. If these lower scores become a long-term trend, the negative implications could include a loss of competitive standing relative to neighboring states and a potential exodus of technical talent seeking more active markets. Addressing these dips often requires a strategic focus on bolstering support for local inventors and streamlining the transition from conceptualization to market realization.

Discussion:

In January, the Missouri 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 Missouri office provides R&D tax credit consulting and advisory services to Kansas City, St Louis, Springfield, Columbia, Independence, Lees Summit, Ofallon, St Joseph, St Charles, and Blue Springs.

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.