March 2026: 1.19% (A+ grade)
North Dakota inventionINDEX March 2026: 1.19% (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).
North Dakota inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| March 2026 | 1.19% |
| Feb 26 | 1.10% |
| Jan 26 | 1.02% |
| Dec 25 | 1.02% |
| Nov 25 | 1.04% |
| Oct 25 | 1.04% |
| Sep 25 | 1.23% |
| Aug 25 | 1.02% |
| Jul 25 | 1.16% |
| Jun 25 | 1.06% |
| May 25 | 1.19% |
| Apr 25 | 1.00% |
| Mar 25 | 1.06% |
The North Dakota inventionINDEX for March 2026 shows a robust performance, reaching 1.19 percent and securing an A+ rating. This indicates a significant upward trend during the first quarter of 2026, building upon the 1.10 percent seen in February and marking a clear departure from the C+ stagnation observed in January and December 2025. This current figure reflects a revitalization of the state’s innovation sector as it moves into the spring season, suggesting that recent initiatives in research and development are beginning to yield measurable results.
When viewed against the broader five-year historical landscape, the March 2026 score stands as one of the strongest recorded entries in the table. It matches the high of May 2025 and sits just below the 1.23 percent peaks achieved in September 2025 and August 2023. More importantly, it demonstrates a substantial recovery from the historical low of 0.96 percent seen in October 2022. The state has transitioned from a period of relative inconsistency to a more sustained high-performance bracket, indicating that the drivers of local ingenuity are gaining more reliable traction than in previous years.
A high grade such as the current A+ fosters several beneficial outcomes for the regional economy. Strong index scores typically correlate with an increase in intellectual property filings and a heightened interest from venture capital firms looking for emerging technology hubs. For North Dakota, these ratings signify a healthy pipeline of commercialization, which attracts specialized talent and encourages local entrepreneurs to scale their operations. This environment of success creates a positive feedback loop that reinforces the state’s reputation as a stable and productive theater for scientific and industrial advancement.
Conversely, periods where the score dips into the C or D ranges, such as the 1.00 percent in early 2022 or the sub-1.00 percent trough in late 2022, carry significant risks. Lower scores often point to a bottleneck in the innovation process or a reduction in the capital available for high-risk ventures. The negative implications of a sustained lower rating include a potential loss of competitive edge and the risk of skilled innovators relocating to more active markets. By maintaining the current momentum, the state avoids the inertia associated with these lower scores and remains a relevant player in the national innovation landscape.
Discussion:
In March, the North Dakota 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 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 North Dakota office provides R&D tax credit consulting and advisory services to Fargo, Bismarck, Grand Forks, Minot, and West Fargo.
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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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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