Delaware inventionINDEX July 2026: 1.10% (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 Delaware inventionINDEX Scores

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

The Delaware inventionINDEX recorded a score of 1.10% alongside a C rating in July 2026, positioning the latest performance as a moderate yet stable data point within the broader macroeconomic picture. When compared to the immediate preceding months of June 2026 (1.48%, B) and May 2026 (1.31%, B-), the July figure reflects a mild consolidation. However, when evaluated against the full 60-month historical trajectory spanning from July 2021 to July 2026, the current score exceeds the historical mean of 0.99%. The July 2026 standing demonstrates significant resilience when contrasted with the depressed periods of late 2021 and early 2022, during which the index dipped as low as -0.13% in December 2021 and regularly churned out failing F grades. While the score is below the year’s peak of 1.54% recorded in March 2026, it confirms that the regional innovation landscape remains substantially healthier than its multi-year baseline.

A long-term evaluation of the 60-month dataset reveals a structural transformation in innovation metrics over time. Between July 2021 and December 2022, annual average scores hovered between 0.55% and 0.68%, characterized by persistent volatility and frequent dips below 0.50%. The momentum shifted noticeably throughout 2023 and 2024, culminating in an exceptional growth phase across 2025 that produced the historical peak of 2.03% (A+) in April 2025 and an annual average of 1.33%. The first seven months of 2026 have sustained an elevated average score of 1.27%, despite a transient retreat to 0.81% in April 2026. This multi-year progression illustrates that recent scores, including the current 1.10%, belong to an established higher band of performance rather than isolated spikes.

Achieving higher grades and elevated index scores yields profound economic benefits across the regional ecosystem. Scores reaching into the A and upper B tiers, such as October 2023 (1.89%, A) or April 2025 (2.03%, A+), indicate robust patent output, vigorous commercialization of new technologies, and accelerated startup creation. Strong index ratings serve as an essential signal to institutional investors, private equity firms, and corporate research partners seeking dynamic growth markets. Higher scores foster a compounding cycle of prosperity, attracting top-tier research talent, encouraging venture capital allocation, and strengthening Delaware’s overall competitive advantage in high-value industries.

Conversely, lower index scores and substandard ratings carry material risks for the regional economy. Readings in the D and F ranges, similar to those observed throughout late 2021 and early 2022, signal systemic friction such as declining research expenditures, administrative delays, or broader economic contraction. Prolonged periods of low scores threaten to diminish investor confidence, triggering capital reallocation toward more active technical hubs. If low index ratings persist without strategic intervention, regional institutions risk losing technical leadership, suffering brain drain, and missing opportunities to capture emerging industrial value chains.

Discussion:

In July, the Delaware inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar 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 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.