ALASKA INVENTIONINDEX | JANUARY 2026

January 2026: 1.17% (C+ grade)

Alaska inventionINDEX January 2026: 1.17% (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).

Alaska inventionINDEX Scores – Last 12 months

The January 2026 score of 1.17% with a C+ rating marks a period of relative stability for the Alaska inventionINDEX as it enters the new year. This figure represents a slight elevation from the 0.81% D+ rating observed in December 2025, maintaining a pattern of oscillation between these two tiers that characterized much of the latter half of 2025. While the current score indicates a modest level of innovative activity, it suggests that the regional innovation ecosystem is navigating a phase of consolidation rather than rapid expansion. By holding steady at the C+ level, the index demonstrates a level of resilience that avoids the more critical lows experienced in previous cycles.

When placed in a broader historical context, the current score reflects a significant departure from the peak performance seen earlier in the 60-month window. In 2021, the index frequently reached A+ ratings with scores as high as 2.65%, signaling a robust era of creative output. However, the trajectory over the last two years has been more turbulent, with frequent descents into the F category at 0.44% during much of 2024 and early 2025. The shift from these failing grades to the current C+ standing suggests a gradual recovery and a move toward a more sustainable, albeit lower, baseline of invention and intellectual property development compared to the highs of five years ago.

Achieving higher grades within the inventionINDEX carries substantial positive implications for the economic and intellectual landscape of Alaska. A return to the A or B range would signify a surge in patent filings, technological breakthroughs, and a thriving culture of entrepreneurship. Such scores often correlate with increased venture capital interest and the birth of new industries that can diversify the local economy. A higher rating serves as a beacon for talent and investment, indicating that the infrastructure for research and development is performing at an optimal level and producing tangible results that can drive future prosperity.

Conversely, the persistent lower scores and frequent F ratings seen in the historical table point to several negative implications for the region. A score of 0.44% indicates a stagnation in creative capital, which may lead to a long-term decline in competitive advantage. If the index remains consistently low, it suggests a lack of support for innovators and a potential brain drain as creative individuals seek more dynamic environments. The recurring D+ and C+ ratings highlight a need for strategic intervention to prevent the state from falling into a cycle of innovation inertia, ensuring that the Alaskan economy does not become overly reliant on legacy industries while the global market evolves.

Discussion:

In January, the Alaska inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a 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 Alaska office provides R&D tax credit consulting and advisory services to Anchorage, Fairbanks, Juneau, Sitka and Wasilla.

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.