June 2026: 1.38% (B grade)

Illinois inventionINDEX June 2026: 1.38% (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 Illinois inventionINDEX Scores

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

The Illinois inventionINDEX for June 2026 stands at 1.38% with a rating of B, reflecting a meaningful upward shift when compared to the performance of the immediately preceding months. This latest score indicates a significant recovery from the spring slowdown observed in April 2026, when the index dipped to 0.85% with a D+ rating, and May 2026, which recorded a modest 0.93% with a C- rating. When examined against the broader historical context of the provided sixty-one months of data, the June 2026 figure positions itself slightly above the overall historical average of approximately 1.36%. This resurgence suggests that the local innovation ecosystem is regaining momentum as it enters the mid-year period, effectively overcoming the short-term contraction experienced during the early months of 2026.

A deeper exploration of the long-term historical data reveals that the inventionINDEX has experienced several periods of volatility and cyclical shifts over the last five years. For instance, the current score of 1.38% is substantially lower than the historical peak achieved in October 2023, when the index reached an exceptional 3.00% with an A+ rating. Conversely, the current performance is vastly superior to the historic low recorded in July 2023, where the score plummeted to just 0.43%, resulting in an F rating. Throughout 2024 and 2025, the index frequently hovered between the 1.10% and 1.60% range, making the June 2026 score a return to a familiar and stable baseline after a turbulent multi-year trajectory. Analyzing these past benchmarks helps contextualize current progress, illustrating that while the index is far from its all-time highs, it remains well insulated from previous critical lows.

Sustaining a higher inventionINDEX score and achieving stronger grades, such as the B rating in June 2026 or the prestigious A+ ratings seen in previous cycles, carries highly positive outcomes for the regional economy. Elevated scores reflect a thriving environment for intellectual property development, robust research activity, and accelerated commercialization of new technologies. A higher grade serves as a strong signal to venture capitalists, corporate partners, and public funding bodies that the state possesses a fertile ground for high-growth enterprises. This positive momentum fosters job creation in advanced industries, attracts top-tier scientific and engineering talent, and strengthens the overall competitiveness of the local market on a national scale.

On the other hand, a lower inventionINDEX score and declining grades introduce several negative implications that can hamper regional progress. When the index falls into the C, D, or F ranges, as it did during the low points of 2021, 2023, and early 2026, it often signals structural bottlenecks, a slowdown in patent filings, or reduced capital deployment for new ventures. Lower scores can indicate a lack of supportive infrastructure, diminished risk tolerance among investors, or a temporary stagnation in creative output. If a downward trend persists, it can lead to a loss of competitive advantage, causing valuable talent and innovative businesses to migrate to more dynamic regions. Monitoring these lower thresholds is therefore essential for policymakers and industry leaders to identify when corrective strategic investments are required to revitalize the innovation pipeline.

Discussion:

In June, 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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