June 2026: 1.20% (B- grade)

Indiana inventionINDEX June 2026: 1.20% (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 Indiana inventionINDEX Scores

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

The Indiana inventionINDEX for June 2026 stands at 1.20% with a rating of B-, reflecting a modest but notable recovery from the early months of the year. This current score marks a slight improvement over May 2026, which posted at 1.19% with a C+ rating, and a more pronounced ascent from the low point of 1.05% seen in January 2026. Looking at the broader trajectory of the past 12 months, the index has largely fluctuated within the C+ to B range, suggesting a period of stabilization after prior years of more intense volatility. This steadying trend indicates that while the regional innovation ecosystem is not experiencing explosive growth, it maintains a resilient baseline that prevents a downward spiral.

Examining the broader 60-month historical horizon reveals a dynamic narrative of peaks and valleys for the index. The absolute pinnacle of innovation activity occurred in November 2023, when the score surged to an impressive 2.26% and earned an A+ rating. Conversely, the historical floor of 1.05% was touched twice within this five-year window, first in May 2024 and most recently in January 2026. The current June 2026 score of 1.20% sits comfortably above these historical lows but remains well below the heights achieved during the booming periods of 2022 and late 2023, showcasing a mature ecosystem that is currently consolidating its gains rather than breaking new ground.

Achieving a higher score and a stronger letter grade on the index carries significant positive outcomes for the regional economy. When the index moves into the A range, it signals robust entrepreneurial vitality, increased patent filings, and a thriving research and development sector. These elevated marks often translate into greater investor confidence, attracting venture capital and fostering high-tech job creation that drives long-term economic prosperity. A high rating also enhances the region’s reputation as a hub for cutting-edge technology and talent acquisition, creating a self-sustaining cycle of growth, commercialization, and economic resilience.

Conversely, a lower score and depressed ratings carry serious negative implications that can hamper regional progress. A sustained drop into the C range or lower indicates a deceleration in innovative output, which may stem from reduced funding, a shortage of skilled talent, or a general slowdown in commercial enterprise. Such declines can lead to a loss of competitive advantage against other tech corridors, causing a stagnation in high-paying job growth and discouraging external investment. To prevent these downturns from becoming permanent fixtures, stakeholders must continually monitor these metrics and implement strategic interventions that support foundational research and entrepreneurial infrastructure.

Discussion:

In June, the Indiana inventionINDEX scored a positive sentiment which was lower than the previous year’s average but 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 Indiana office provides R&D tax credit consulting and advisory services to Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Hammond, Gary and Lafayette

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.

Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/free-webinars or contact your usual Swanson Reed representative.