February 2026: 1.17% (C+ grade)

Alaska inventionINDEX February 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 Alaska inventionINDEX score for February 2026 stands at 1.17 percent, maintaining a steady C+ rating that has characterized much of the recent six month period. When viewed against the historical data of the last 60 months, this current performance reflects a moderate recovery from the frequent 0.44 percent (F) ratings observed throughout 2024 and 2025. While the current score is an improvement over the cyclical lows, it remains significantly below the peak performance recorded in 2021, when the index reached a high of 2.65 percent (A+). This trajectory suggests that while the state’s innovation ecosystem is showing signs of stabilization, it has yet to regain the high velocity output seen five years ago.

A higher inventionINDEX grade, such as the 1.91 percent or 2.65 percent seen in years past, serves as a vital indicator of a thriving intellectual property landscape. When the rating reaches the A+ tier, it typically signifies a robust period of research and development, high entrepreneurial engagement, and a supportive environment for new technologies. These elevated scores often correlate with increased venture capital interest and a more competitive local economy. By achieving these higher benchmarks, the state demonstrates its capacity to transform creative ideas into tangible assets, which in turn fosters long term economic diversification and high value job creation.

On the contrary, the negative implications of lower scores, particularly the 0.44 percent (F) ratings that appear periodically in the table, are cause for concern. A low index score suggests a stagnation in the patenting process or a lack of resources dedicated to the protection of new inventions. When the score drops to these levels, it may indicate that local inventors are facing significant barriers to entry or that there is a lack of confidence in the commercial viability of new concepts. Persistent low ratings can lead to a loss of talent as innovators seek more supportive environments elsewhere, ultimately weakening the state’s position in the global technological marketplace.

Over the full 60 month duration, the Alaska inventionINDEX has experienced considerable volatility, swinging between periods of high achievement and significant contraction. The current consistency at the 1.17 percent level throughout early 2026 suggests a move away from the extreme lows of the previous year, providing a foundation for potential growth. Moving forward, the goal for the state’s innovation leaders will be to transition from this C+ stability back toward the B+ and A+ ranges. Continued investment in intellectual infrastructure and inventor support will be necessary to ensure that the index trends upward, securing a more prosperous and innovative future for the region.

Discussion:

In February, 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 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 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.