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).

Georgia inventionINDEX Scores – Last 12 months

The Georgia inventionINDEX recorded a score of 1.47 percent and a C+ rating for February 2026. While this represents a notable improvement from January 2026, which saw a significant drop to 0.98 percent and a C- rating, the current figure remains well below historical peaks. Over the past sixty months, the index has experienced considerable volatility, reaching a high of 3.16 percent with an A+ rating in March 2021. The current stabilization suggests a move away from the recent five-year low, yet it highlights a persistent gap when compared to the robust activity observed during the 2021 and 2022 calendar years.

A higher inventionINDEX score correlates with several positive economic outcomes for the region. When the rating reaches the A or B range, as seen during the frequent peaks in 2022 and 2023, it typically indicates an environment rich in research, development, and intellectual property creation. Such high performance levels often attract substantial venture capital investment and foster a competitive atmosphere that draws top-tier technical talent to the state. These periods of high scores represent a thriving ecosystem where innovation drives job growth and strengthens Georgia’s position as a leader in the global technology market.

Conversely, lower scores and ratings like the C range observed throughout much of 2025 and early 2026 carry negative implications for the local economy. A score falling below the 1.50 percent threshold suggests a potential slowdown in the pace of new inventions and a possible reduction in corporate research and development spending. This stagnation can lead to a decrease in long-term economic competitiveness and may result in a loss of talent as skilled professionals seek opportunities in more active innovation hubs. Furthermore, consistently low ratings can deter institutional investors who prioritize regions with high growth potential and steady technological advancement.

Reflecting on the sixty-month historical trajectory, the Georgia inventionINDEX shows a clear pattern of cyclical fluctuations. The transition from the high-performing years of 2021 and 2022 to the more conservative figures seen in the last twelve months indicates a shift in the innovative landscape. While the recovery in February 2026 provides a positive signal, the state must address the underlying factors that have suppressed the index compared to its previous three percent peaks. Monitoring these trends remains essential for policymakers and business leaders as they work to restore the state to its former status of excellence in innovation and commercial development.

Discussion:

In February, the Georgia inventionINDEX scored a positive 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 Georgia office provides R&D tax credit consulting and advisory services to Atlanta, Columbus, Savannah, Athens, Sandy Springs, Roswell, Macon, Johns Creek, Albany, Warner Robins, Augusta, Valdosta, Smyrna, Brookhaven, Dunwoody, Peachtree Corners, Marietta, Alpharetta, Milledgeville and Rome.

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. 

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