June 2026: 1.17% (C+ grade)

Alaska inventionINDEX June 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).

Historical Alaska inventionINDEX Scores

The Alaska inventionINDEX score for the past 12 months is shown in the table below.

The Alaska inventionINDEX closed out the first half of 2026 with a score of 1.17% in June, maintaining the C+ rating established in May and indicating a stable close to the second quarter. This recent performance represents a swift recovery from the significant contraction observed in April 2026, when the score plummeted to its historical baseline minimum of 0.44%, yielding an F grade. When compared to the overall 60-month historical data, the mid-2026 score of 1.17% stands slightly above the historical mean of approximately 0.92%. This positions the current index in a moderately favorable light, demonstrating short-term resilience and an upward trajectory after a volatile spring.

A broader evaluation of the historical timeline from June 2021 through June 2026 reveals that while the current index is stable, it remains well below its historical peaks. The index reached its highest point in November 2021 with an exceptional score of 2.65%, earning an A+ rating during a period of elevated innovation metrics. The annual average for 2021 stood at a robust 1.44%, but subsequent years experienced a visible correction. In 2022, the index bottomed out with an annual average of 0.72%, frequently hitting the 0.44% minimum score. Although the years 2023 through 2025 demonstrated a gradual stabilization, with averages hovering between 0.84% and 0.90%, the frequent recurrence of D+ and F grades emphasizes that the current 1.17% rating is a positive step forward from the prolonged baseline stagnation of previous years.

Securing a higher score and a stronger grade on the inventionINDEX carries significant positive outcomes for regional development. Elevated marks, such as the B+ and A+ grades achieved in late 2021 and early 2024, indicate a thriving ecosystem characterized by robust research, increased patent filings, and active commercialization. These higher ratings serve as a strong signal to venture capitalists, corporate partners, and public funding bodies that the area possesses a highly productive intellectual infrastructure. Consequently, strong performance can stimulate economic expansion, foster high-value job creation, and attract elite entrepreneurial talent looking to capitalize on a supportive and dynamic market.

Conversely, the negative implications of a lower score and depressed grades are substantial for long-term competitiveness. When the index slides into the F and D+ territories, as seen during the frequent downturns across 2022 and late 2024, it highlights systemic vulnerabilities such as declining innovation output, reduced funding, or bottlenecks in the regulatory pipeline. These lower ratings suggest that creative capital is either underutilized or failing to transition successfully into the marketplace. If a lower trend persists, it can erode investor confidence, lead to a loss of intellectual talent to more competitive regions, and ultimately result in economic stagnation.

Discussion:

In June, the Alaska 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 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.