April 2026: 1.33% (A- grade)
Iowa inventionINDEX April 2026: 1.33% (A- 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).
Iowa inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 1.33% |
| Mar 26 | 1.72% |
| Feb 26 | 1.26% |
| Jan 26 | 1.87% |
| Dec 25 | 1.94% |
| Nov 25 | 1.61% |
| Oct 25 | 1.54% |
| Sep 25 | 1.48% |
| Aug 25 | 1.15% |
| Jul 25 | 1.71% |
| Jun 25 | 1.61% |
| May 25 | 1.50% |
| Apr 25 | 1.96% |
The Iowa inventionINDEX for April 2026 is 1.33 percent, carrying an A-minus rating. While this represents a decrease from the previous month’s high of 1.72 percent, it continues a period of relative strength that began in mid-2025. When looking at the 60-month horizon, this score is notably higher than the mid-2024 period, when the index frequently dipped into the 1.05 percent to 1.15 percent range. The current performance suggests that while the momentum from the start of the year has slowed slightly, the state remains positioned well above its historical low points.
Higher grades such as the A-plus ratings observed throughout late 2025 correlate with several positive economic indicators for the state. A score nearing 2.00 percent, as seen in April 2025, reflects a surge in intellectual property production and a robust environment for technological breakthroughs. These high marks often result in increased venture capital interest and the expansion of high-tech industries within Iowa. Such vitality supports job creation in specialized fields and reinforces the reputation of the region as a competitive player in the national innovation landscape.
Conversely, a lower score like the 0.88 percent recorded in July 2022 or the sub-one percent ratings in late 2024 brings significant negative implications. These lower tiers often indicate a period of stagnation in research and development or a lack of new commercializable ideas entering the pipeline. When the rating falls into the C or D categories, it may signal that local innovators are facing barriers such as limited funding or a lack of institutional support. This can lead to a decrease in the long-term competitiveness of the state and might cause a migration of talent to more active innovation hubs.
Looking at the overall 60-month trajectory, the Iowa inventionINDEX shows a clear evolution from the volatility of 2022 and 2023 toward a more sustained high-performance phase in 2026. The state has demonstrated an ability to recover from significant dips, transitioning from a C-plus average in early 2024 to a dominant A-plus position by the end of 2025. Maintaining a score above the 1.30 percent mark will be essential for preserving the economic gains achieved over the last year. This historical data serves as a reminder that consistency in innovation metrics is a key driver of broader regional prosperity.
Discussion:
In April, the Iowa inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an 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 Iowa office provides R&D tax credit consulting and advisory services to Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City, Waterloo, West Des Moines, Ames, Council Bluffs and Dubuque.
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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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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