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).

Connecticut inventionINDEX Scores – Last 12 months

The Connecticut inventionINDEX for March 2026 stands at 1.08%, yielding a C+ rating. This performance represents a significant and steady recovery throughout the first quarter of the year, following a concerning dip to 0.84% and a D- rating in January. While the current score indicates a move toward stabilization, it remains only a modest improvement over the 0.99% recorded at the close of 2025. This recent data suggests that while the state is successfully trending away from its lower-tier performance, it has yet to re-establish a truly robust innovative momentum as it enters the spring season.

Looking at the sixty-month historical horizon, the current 1.08% score places Connecticut in a middle-tier position relative to its past performance. The state achieved its highest marks in early 2021, reaching an A- rating with a score of 1.24% in March of that year. Since that peak, the index has been characterized by significant volatility, frequently falling into the D and F categories, including a historical floor of 0.82% in November 2024. While the March 2026 score is a welcome departure from those lows, it still trails the stronger performance periods of mid-2021 and late 2023, highlighting a long-term struggle to maintain a consistent B-grade or higher.

Achieving a higher grade, such as the A and B ratings seen sporadically over the last five years, brings substantial benefits to the regional economy. An elevated index score typically reflects a surge in patent activity, a higher rate of technology transfer, and a more aggressive approach to industrial research and development. These peak periods serve as critical signals to venture capitalists and corporate leaders that the state possesses a fertile environment for high-growth investments. A strong innovative standing encourages the creation of a sophisticated workforce, as top-tier talent is naturally drawn to regions where new ideas are actively being commercialized and supported by a robust infrastructure.

On the other hand, the persistent recurrence of lower scores in the D and F ranges presents clear risks to Connecticut’s future competitiveness. When the index falls below the 0.90% threshold, it often points to a stagnation in new intellectual property development or a lack of institutional support for emerging industries. A prolonged stay in these lower tiers can trigger a brain drain effect, where local inventors and entrepreneurs migrate to more dynamic innovation hubs. Furthermore, consistently low ratings can dampen investor confidence, making it increasingly difficult for the state to secure the necessary capital to drive large-scale technological breakthroughs and maintain its status in a competitive national market.

Discussion:

In March, the Connecticut inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 Connecticut office provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

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. 

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