Connecticut inventionINDEX May 2026: 0.84% (D- 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 recent performance of the Connecticut inventionINDEX shows a clear downturn as of May 2026, with the score settling at 0.84% and receiving a rating of D-. This matches the low score observed in January 2026 and marks a significant multi-month decline from the brief resurgence in March 2026, when the index climbed to 1.08% with a C+ rating. Looking across the full 61-month historical horizon, the current score resides well below the long-term average of approximately 0.97%. This trajectory reflects a persistent struggle to recapture the peak innovation and economic vitality captured in June 2021, when the index reached its highest point of 1.23% with an A- rating, signaling a period of contraction rather than robust creative or industrial expansion.

A deeper historical comparison highlights that while the index is currently depressed, it remains slightly above its absolute historical nadir of 0.82% and an F rating, which occurred in November 2024. The data demonstrates a fluctuating pattern over the last five years, where periods of strength, such as August 2021 (1.19%, B+) and August 2023 (1.15%, B), have gradually given way to more frequent stretches dominated by lower-tier grades. In fact, C- and D-range scores constitute the vast majority of occurrences in this dataset, indicating that sustained high performance has been elusive. The swift decline from March 2026 to May 2026 emphasizes the volatility within the local innovation pipeline, proving that short-term spikes do not necessarily establish stable upward momentum.

Achieving higher grades, such as the B and A classifications witnessed in the earlier years of this tracking period, carries substantial positive implications for the regional economy and innovation landscape. Higher inventionINDEX scores generally reflect robust patenting activity, increased venture capital investments, and a thriving ecosystem for research and development. When the index moves into positive territory, it acts as a beacon for high-tech industries and skilled talent, reinforcing investor confidence and stimulating job creation. A higher grade suggests that the infrastructure supporting entrepreneurship is working efficiently, enabling commercialization and positioning the state as a competitive leader in the broader marketplace.

Conversely, sustained lower scores and declining ratings, like the current D- performance, signal notable systemic vulnerabilities that require attention. A lower index score implies a stagnation in original intellectual property development, potential funding bottlenecks for early-stage ventures, or an overall slowdown in collaborative industrial research. When these lower ratings persist, they risk creating a negative feedback loop where risk-averse investors redirect capital to more vibrant regions, thereby accelerating talent drain and weakening economic resilience. The historical baseline serves as a reminder of what is achievable, suggesting that the recent downturn presents an urgent call to reassess supportive frameworks, enhance public-private partnerships, and revitalize the core engines of local innovation.

Discussion:

In May, the Connecticut inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed 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.