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).

Illinois inventionINDEX Scores – Last 12 months

The Illinois inventionINDEX for March 2026 stands at 1.31%, earning a B- rating. This figure represents a notable and consistent upward trajectory throughout the first quarter of the year, following a score of 0.99% in January and 1.16% in February. This steady climb suggests that the state is successfully navigating a recovery phase after the stagnation experienced during the final quarter of 2025. While the current rating indicates a return to a more stable innovation baseline, it remains a transitional figure as the state seeks to regain the stronger performance levels seen during the previous summer.

Evaluating these results within the broader sixty-month historical context reveals that Illinois is currently operating in a moderate performance bracket. The state achieved its most significant historical pinnacle in October 2023, when the index reached a remarkable 3.00% with an A+ rating. Conversely, the current 1.31% is a vast improvement over the historical floor of 0.43% recorded in July 2023. This five-year view illustrates a state that has effectively raised its floor to avoid the failing grades of the past, though it has yet to recapture the high-octane innovative output that characterized its most productive periods in late 2023 and early 2024.

Achieving a higher grade, particularly in the A and A+ categories, yields substantial socioeconomic dividends for the region. An elevated index score serves as a primary indicator of a healthy intellectual property pipeline, typically correlating with increased patent registrations and a surge in venture capital investment. These peak periods foster a virtuous cycle of growth, attracting and retaining elite scientific and engineering talent who seek a dynamic environment for commercializing new technologies. When the score rises, it signals to national and global markets that Illinois possesses the institutional strength and creative vitality necessary to lead in technological disruption.

Conversely, a slide into lower ratings, such as the C and F grades that have appeared sporadically over the last five years, carries serious negative implications. A lower score often reflects a cooling of the entrepreneurial climate or a bottleneck in the transition from laboratory research to the commercial market. If the index remains depressed for an extended duration, it can lead to a brain drain effect, where local innovators move to states with more robust support systems and higher innovation ratings. Furthermore, lower grades can dampen investor confidence, making it increasingly difficult for early-stage startups to secure the funding required to scale their operations and maintain a competitive edge in a global economy.

Discussion:

In March, the Illinois inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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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