Illinois inventionINDEX July 2026: 0.97% (C- 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 score for July 2026 recorded a level of 0.97 percent, earning a C- rating. This score reflects a contraction from June 2026, when the index registered 1.38 percent with a B rating, and marks a continuation of muted innovation metrics observed throughout much of the current calendar year. Across the first seven months of 2026, scores have fluctuated between a low of 0.85 percent in April and a peak of 1.38 percent in June, keeping the year-to-date average around 1.09 percent. Compared to the overall dataset mean of approximately 1.35 percent across the recorded historical span, the latest figure indicates that local inventive activity and commercial output are currently operating below historical standards.

Evaluating the broader historical timeline reveals significant variance in state innovation metrics over time. The highest performance during this multi-year evaluation occurred in October 2023, when the index reached 3.00 percent with an A+ rating, followed by strong periods such as August 2023 at 2.25 percent and March 2022 at 2.20 percent. Conversely, the dataset highlights notable historical dips, most severely in July 2023 at 0.43 percent and September 2021 at 0.57 percent, both receiving F ratings. While the July 2026 score of 0.97 percent remains safely above those historical lows, it falls well short of the robust A-tier performances seen in late 2024 and mid-2025, signaling a phase of relative stagnation rather than outright distress.

Sustained high scores, particularly those in the A and B ranges, yield substantial economic and operational benefits for the regional ecosystem. Elevated index values reflect robust patent filing activity, thriving academic research commercialization, and high levels of technological enterprise creation. Higher ratings boost investor confidence, serving as a strong signal to venture capital firms and corporate partners that the state possesses a fertile environment for research and development investments. Ultimately, top-tier performance drives high-value job creation, accelerates technology transfer from universities to market, and reinforces the reputation of Illinois as a primary hub for technological advancement.

On the other hand, sustained lower scores in the C, D, and F categories carry distinct risks for the regional economy. Prolonged periods of depressed ratings indicate potential bottlenecks in research funding, reduced entrepreneurial output, or delays in bringing new intellectual property to market. Persistent weakness in the index can deter external investment, prompt emerging startups to relocate to more vibrant innovation corridors, and diminish overall regional competitiveness. To reverse these downward trends, policymakers, academic institutions, and industry leaders must actively foster collaborative ecosystems, streamline commercialization pathways, and incentivize private R&D spending.

Discussion:

In July, the Illinois inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed 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.

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