Arkansas inventionINDEX September 2026: 1.20% (B 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 Arkansas inventionINDEX Scores

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

The September 2026 Arkansas inventionINDEX score of 1.20% with a B rating marks a noticeable recovery compared to the performance observed during the preceding spring and summer months. Across the preceding five months of 2026, the index fluctuated between a low of 0.98% (C-) in July and a modest high of 1.12% (C+) in August. Reaching 1.20% brings the index back above its 60-month historical average of roughly 1.16%, demonstrating a solid upward rebound from the sub-1.00% contractions experienced in February, April, and July 2026.

Placing the current performance into a broader historical context across the full 60-month span highlights significant cyclical shifts in the region’s innovation output. The dataset reached its historical zenith in late 2023, peaking at 1.94% (A+) in October 2023 and 1.64% (A+) in November 2023, alongside an earlier surge in August 2023 at 1.45% (A+). In contrast, the historical low occurred in October 2022 at 0.76% (D-). While the latest score of 1.20% remains well below the 2023 peaks, it compares favorably against the performance recorded throughout 2025, matching the 1.20% (B) achieved in December 2024 and December 2021.

Securing higher scores and higher ratings yields substantial strategic advantages for the state’s economic development. Strong performance in the B to A range signals robust intellectual property creation, efficient technology transfer, and heightened commercialization activity. These positive outcomes foster investor confidence, attract venture capital funding to local startups, and bolster public-private research collaborations. Higher scores also indicate that local research institutions and private enterprises are effectively expanding their creative capacity and output.

Conversely, dips into lower score tiers and grades bring noticeable negative implications for the innovation ecosystem. Lower ratings, such as C- or D-, point toward diminished research activity, constrained funding, or structural bottlenecks in turning original concepts into registered IP. Prolonged periods of depressed scores risk stalling high-tech job growth, causing local talent retention issues, and reducing competitiveness relative to neighboring states. Sustaining momentum above key historical benchmarks is therefore essential to preserving regional growth.

Discussion:

In September, the Arkansas 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 Arkansas office provides R&D tax credit consulting and advisory services to Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, North Little Rock, Conway, Rogers, Pine Bluff and Bentonville

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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