Indiana inventionINDEX September 2026: 1.21% (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 September 2026 registered at 1.21% with a B- rating, reflecting a 19 basis point contraction from August 2026’s 1.40% score and B+ rating. Over the 60-month historical span evaluated, the overall average index score stands at approximately 1.34%, placing the latest rating slightly below the multi-year baseline. While September 2026 matches the 1.21% mark recorded in July 2026 and November 2025, it remains noticeably lower than historical peaks such as the record high of 2.26% in November 2023. Nevertheless, the current standing demonstrates substantial resilience when compared to the multi-year low of 1.05% recorded in January 2026 and May 2024.

A broader examination of the historical sequence reveals a structural shift in regional innovation momentum between earlier and recent cycles. Between late 2021 and late 2023, the index frequently reached A-tier metrics, including notable marks of 1.61% in May 2022, 1.59% in August 2022, and 1.56% in August 2023. In contrast, performance across 2025 and 2026 shows tighter consolidation within the B and C rating categories, averaging 1.22% over the trailing twelve months. The recent fluctuation between 1.15% in April 2026 and 1.40% in August 2026 indicates moderate short-term volatility, with September returning to a stable middle ground within the broader multi-year distribution.

Achieving higher inventionINDEX scores and securing top-tier ratings such as A or B+ yields pronounced strategic and economic benefits for the state. Elevated scores signal robust patent generation, efficient technology transfer, and accelerated commercialization activity across key industry sectors. High ratings serve as a strong market signal that attracts institutional venture capital, encourages corporate research and development investment, and draws top engineering and scientific talent to the region. Furthermore, a sustained upper-tier index fosters a vibrant entrepreneurial ecosystem that accelerates high-value job creation and enhances regional competitive advantage.

Conversely, persistent declines or lower ratings in the C range carry significant risks for long-term economic and technological expansion. Reduced index scores suggest potential bottlenecks in research funding, slower intellectual property pipeline development, or challenges in translating academic discoveries into market-ready commercial ventures. Prolonged suppression in the index can diminish investor confidence, trigger a drain of top-tier technical talent to higher-performing tech corridors, and cause local enterprises to lag behind in adopting cutting-edge technologies. Maintaining momentum above these lower thresholds is essential to safeguarding the region’s overall competitive position.

Discussion:

In September, the Indiana inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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.