February 2026: 1.40% (B- grade)

Delaware inventionINDEX February 2026: 1.40% (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).

Delaware inventionINDEX Scores – Last 12 months

The February 2026 Delaware inventionINDEX score of 1.40 percent, resulting in a B- rating, indicates a positive shift from the previous month of January, which sat at 1.24 percent. When viewed against the backdrop of the full 60-month historical table, this current standing reflects a period of relative strength and stabilization. The index has successfully moved away from the extreme volatility observed in 2021 and 2022, where scores frequently languished below the 0.50 percent threshold. This transition into the B category suggests a more sophisticated and reliable innovation landscape than the one that existed during the earlier, more turbulent years of the data set.

Analyzing the long-term trends reveals a pattern of significant recovery from historical lows to more sustainable heights. The peak of the 60-month window occurred in April 2025 with a score of 2.03 percent and an A+ rating, marking the highest point of innovation activity in the recorded period. Since that summit, the index has experienced natural fluctuations but has managed to remain significantly above the historical floor of negative 0.13 percent recorded in December 2021. The most recent six months show a consistent ability to maintain scores above the 0.90 percent mark, signaling a departure from the persistent D and F ratings that dominated the landscape four to five years ago.

Higher grades within the Delaware inventionINDEX, particularly those reaching the A or B categories, carry substantial positive implications for the regional economy. A robust score serves as a clear indicator of high-quality research and development, which often leads to increased venture capital interest and private investment. When the index trends upward, it typically correlates with a higher rate of successful patent filings and the effective commercialization of new technologies. This environment fosters a cycle of growth where successful market entries provide the necessary capital to fuel further exploration and strengthen the overall competitive position of the innovative sector.

Conversely, a drop in the index toward the D or F range presents serious concerns for the long-term health of the innovation pipeline. Lower scores often reflect systemic challenges such as a lack of available funding, a decrease in intellectual property activity, or a talent drain where researchers seek more supportive environments. If the index remains low for extended periods, as seen during the frequent F ratings in 2021 and early 2022, the risk of economic stagnation increases, potentially leading to a loss of technological leadership. Maintaining a trajectory above these historical lows is essential to avoid the negative consequences associated with a stalled or uncompetitive invention ecosystem.

Discussion:

In February, the Delaware 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 a considerable 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 Delaware office provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.

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.