Delaware inventionINDEX August 2026: 1.31% (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 Delaware inventionINDEX Scores

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

The Delaware inventionINDEX for August 2026 registered at 1.31% with a B- rating, reflecting a resilient and solid performance compared to historical baselines. This current figure represents a notable rebound from July 2026 (1.10%, C rating) and matches the solid May 2026 mark, positioning Delaware comfortably above its multi-year historical average of roughly 1.00%. When evaluated against the broader five-year trajectory, the August 2026 standing demonstrates sustained momentum above the depressed levels observed during late 2021 and early 2022, where monthly ratings frequently languished in the F and D ranges. The current B- level indicates a healthy ecosystem where innovation and entrepreneurial activity remain robust, even as the index navigates minor month-to-month fluctuations.

An examination of the 60-month dataset reveals a substantial long-term upward trajectory in Delaware’s innovation metrics, progressing from an annual average of 0.59% in 2021 to over 1.27% in 2026. The historical low occurred in December 2021 at -0.13% with an F rating, marking a challenging contraction period characterized by widespread rating underperformance across late 2021 and early 2022. Conversely, the index achieved its historic peak in April 2025 with an exceptional 2.03% score and an A+ rating, supported by strong secondary peaks in October 2023 (1.89%, A) and August 2023 (1.85%, A). While periodic dips still occur, such as April 2026 dropping temporarily to 0.81% (D+), the overall frequency of failing grades has diminished drastically since mid-2023, yielding a far more reliable environment for enterprise growth.

Achieving higher inventionINDEX scores and securing upper-tier grades like A or B delivers substantial economic and structural advantages to the region. Elevating scores reflect expanding intellectual property creation, higher rates of business formation, and heightened research and development investment. These top-tier marks signal economic vitality, attracting venture capital funds, institutional investors, and highly specialized talent seeking growth opportunities in a thriving innovation hub. Furthermore, stronger scores enhance regional competitiveness, encouraging commercialization partnerships between academic institutions and private industry while instilling business confidence that fosters long-term capital commitments.

Conversely, lower inventionINDEX scores and deteriorating grades down to the D or F range signal serious underlying economic friction and potential headwinds. Persistent score compression points to declining patent filings, sluggish startup creation, or capital flight to competing jurisdictions. Prolonged periods of low ratings can discourage prospective investors, stifle research funding, and trigger brain drain as innovative talent migrates toward more dynamic markets. Recognizing these risk factors underscores the importance of Delaware maintaining its recent stabilization above the 1.20% threshold, ensuring the state avoids reverting to the stagnant cyclical lows of prior years and remains an attractive destination for high-growth enterprises.

Discussion:

In August, the Delaware inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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.