Illinois inventionINDEX August 2026: 1.24% (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 August 2026 Illinois inventionINDEX score of 1.24% with a B- rating demonstrates a steady recovery from July 2026’s slump to 0.97% (C-), placing current performance slightly below the historical 60-month mean of 1.34%. Across the first eight months of 2026, scores have averaged 1.10%, reflecting a period of moderate consolidation compared to earlier multi-year expansions. Although August marks a clear improvement over the April 2026 trough of 0.85% (D+), the score remains beneath the multi-year median of 1.26% and well below historical high-water marks, indicating room for renewed expansion.

A long-term evaluation of the historical dataset highlights pronounced cyclicality over the last five years, bounded by a peak of 3.00% (A+) in October 2023 and a floor of 0.43% (F) in July 2023. Stronger innovation surges occurred during late 2022, late 2023, and late 2024, when metrics frequently surpassed 1.50% and generated consistent A-level ratings. In contrast, periodic contractions, such as September 2021 (0.57%), August 2024 (0.89%), and early 2026, demonstrate that regional invention activity experiences recurring cyclical pullbacks between major product and patent cycles.

Elevated inventionINDEX scores and top-tier letter grades deliver substantial economic and structural advantages across Illinois. High ratings reflect accelerated patent registration, active technology transfer, and heightened venture capital funding for high-growth enterprises. When the state sustains A-range performance, it signals a healthy commercialization pipeline that attracts elite technical talent, encourages corporate research and development investment, and strengthens partnerships between research universities and industrial leadership.

In contrast, persistent declines into C-, D, or F ratings carry notable economic vulnerabilities for the state innovation corridor. Lower scores indicate friction in moving laboratory breakthroughs to market, tightening capital deployment, and slower intellectual property generation. Extended periods of sluggish activity risk encouraging early-stage founders and specialized researchers to relocate to rival innovation hubs, ultimately reducing high-tech job creation and hindering long-term productivity growth.

Discussion:

In August, 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 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 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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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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