February 2026: 0.96% (C- grade)

Connecticut inventionINDEX February 2026: 0.96% (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).

Connecticut inventionINDEX Scores – Last 12 months

The Connecticut inventionINDEX score for February 2026 stands at 0.96 percent with a C- rating, representing a significant recovery from the previous month of January 2026, which saw a dip to 0.84 percent. When looking at the broader sixty-month historical context, this current score sits slightly below the five-year average of approximately 0.98 percent. While the index has managed to climb out of the lower tiers seen at the start of the year, it remains well below the historical peaks observed in early 2021, when the score reached as high as 1.24 percent. This suggests that while recent momentum is positive, the index is still operating within a more conservative range compared to its performance five years ago.

An analysis of the historical data reveals a pattern of periodic volatility followed by gradual shifts in momentum. The index experienced its most robust period during the first half of 2021, consistently achieving grades in the B and A- range. Following that period, the scores entered a fluctuating phase, often hovering between 0.90 percent and 1.10 percent. The most challenging period in the dataset occurred in November 2024, when the score plummeted to its historical low of 0.82 percent. Since that low point, the index has largely struggled to return to its previous B-grade status, with only a few brief spikes, such as the 1.09 percent recorded in July 2025.

The positive outcomes of achieving a higher grade, particularly those in the B and A categories, are numerous and impactful for the regional economy. High scores indicate a robust environment for innovation, characterized by increased patent activity, high levels of research and development investment, and a flourishing entrepreneurial ecosystem. When the index trends toward the higher end of the scale, it typically reflects strong confidence from investors and a competitive advantage in emerging technologies. This level of performance fosters job creation and attracts top-tier talent, positioning the region as a leader in industrial and intellectual advancement.

Conversely, lower scores and grades in the D or F range present several negative implications for the economic landscape. A decline in the index often signals a period of stagnation or a reduction in the output of new ideas and technological breakthroughs. Such dips can lead to decreased investor confidence and a more cautious approach to venture capital, which may slow down the growth of local startups and established firms alike. If the score remains consistently low, it risks creating a talent drain where innovators seek more supportive environments elsewhere. Therefore, while the recent move from 0.84 to 0.96 percent is an encouraging sign of resilience, maintaining a steady upward trajectory is essential to avoiding the pitfalls of long-term economic inertia.

Discussion:

In February, the Connecticut inventionINDEX scored a negative 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 Connecticut office provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

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.