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).

Illinois inventionINDEX Scores – Last 12 months

The February 2026 inventionINDEX score for Illinois stands at 1.16 percent, earning a C+ rating. This reflects a modest recovery from the preceding month of January 2026, which saw the index dip to 0.99 percent and a C- rating. While this upward movement suggests a stabilization in regional innovation activity, the current figure remains within the middle-to-lower tier of performance observed over the last sixty months. This recent trend indicates that while the state is avoiding the critical lows seen in previous cycles, it has yet to reclaim the momentum required to reach the high-performing benchmarks established in earlier years.

When analyzing the historical trajectory, the volatility of the index becomes apparent. The state reached a remarkable peak in October 2023 with a score of 3.00 percent and an A+ rating, marking the highest point in this five-year window. Other periods of strength include early 2024 and mid-2022, where scores frequently surpassed the 1.50 percent threshold. Conversely, the index has navigated significant troughs, such as the 0.43 percent recorded in July 2023 and the 0.57 percent in September 2021. The current score of 1.16 percent is far removed from these extremes, suggesting a period of moderate but cautious activity compared to the more dynamic shifts of the past.

A higher grade on the inventionINDEX, typically represented by an A or B rating, carries substantial positive implications for the Illinois economic landscape. These scores often correlate with periods of robust intellectual property development, increased venture capital inflow, and a thriving ecosystem for tech startups. High ratings serve as a signal to global investors and top-tier talent that the region possesses a fertile ground for commercializing new ideas. Furthermore, a consistently high score indicates that the state’s research institutions and private sectors are effectively collaborating to drive technological advancement, which eventually translates into high-quality job creation and long-term economic resilience.

Conversely, lower scores and grades in the C or D range present notable challenges and negative implications for the state. A declining index often reflects a slowdown in the pace of innovation, potentially due to reduced research funding, a loss of skilled personnel to other regions, or a lack of institutional support for new ventures. When the score remains stagnant or falls, it can lead to a perception of diminishing competitiveness, making it harder to attract the necessary resources for future growth. Sustained low performance risks creating a cycle of inertia where the state may struggle to keep pace with more aggressive innovation hubs. Consequently, maintaining a proactive focus on the factors that drive these scores is essential to ensuring Illinois remains a leader in the national and global invention landscape.

Discussion:

In February, the Illinois inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast 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 Illinois office provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.

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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