Delaware inventionINDEX September 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).

Historical Delaware inventionINDEX Scores

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

The September 2026 Delaware inventionINDEX score of 1.40% with a B- rating demonstrates sustained regional vitality when evaluated against historical performance over the past 60 months. This result marks a steady increase from August 2026 at 1.31% and July 2026 at 1.10%, continuing a broader rebound from April 2026’s contraction to 0.81% (D+). Furthermore, the latest output stands comfortably above the five-year monthly average of 1.00%, reflecting a resilient middle-tier output that aligns closely with February 2026’s 1.40% score and approaches June 2026’s peak for the year at 1.48% (B).

Placing the recent metrics into broader historical context reveals significant long-term growth and structural stability across Delaware’s innovation ecosystem. While current numbers sit below the historical maximum recorded in April 2025 at 2.03% (A+) and other notable crests such as October 2023 at 1.89% (A) and July 2025 at 1.76% (A-), they represent a dramatic improvement over the depressed multi-month troughs seen in late 2021 through early 2023. During that earlier era, the metric repeatedly plummeted into failing territory, touching a low of -0.13% (F) in December 2021 and lingering between 0.10% and 0.40% across several months in 2022 and 2023. The shift from frequent F ratings in previous years to consistent B-level performance in 2026 underlines a meaningful maturation of local inventive output.

Achieving higher scores and top-tier ratings yields several key economic and strategic advantages for the state. Elevated scores signal vibrant intellectual property creation, robust research and development activity, and strong technical commercialization efforts. High grades like A or B serve as a positive signal to private venture capital funds, institutional investors, and corporate research partners looking to expand operations or allocate capital. A flourishing invention pipeline accelerates job creation in high-wage engineering and technological sectors, fosters startup incubation, and enhances Delaware’s reputation as a competitive hub for innovation on the national stage.

Conversely, a declining score or a drift into lower rating categories brings severe downside risks for the local economic ecosystem. Scores dropping toward the D or F range signal stagnant research productivity, reduced patent filings, and diminished commercial application of new technologies. A prolonged slump impairs investor confidence, potentially causing capital flight toward more dynamic regional markets and restricting liquidity for early-stage companies. Furthermore, sustained weakness in the index can trigger talent drain as top talent migrates away, ultimately slowing long-term economic diversification and leaving the market vulnerable to broader macroeconomic downturns.

Discussion:

In September, 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 in contrast 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 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.