June 2026: 1.58% (A+ grade)

Iowa inventionINDEX June 2026: 1.58% (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).

Historical Iowa inventionINDEX Scores

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

The Iowa inventionINDEX score for June 2026 stands at a robust 1.58%, securing a top-tier A+ rating. This latest figure represents a solid recovery from the preceding months of May and April 2026, which recorded scores of 1.28% and 1.33% respectively. When measured against the 60-month historical average of approximately 1.30%, the current score indicates a healthy surge in regional innovation and development activities. This upward movement suggests that the state has successfully re-established its upward momentum after a brief stabilization period in early 2026, keeping its trajectory well aligned with historically strong performance bands.

Examining the 60-month historical horizon reveals significant shifts in performance, bounded by a peak of 1.96% in April 2025 and a historical low of 0.88% in July 2022. The index experienced a remarkably strong phase during the latter half of 2025, maintaining an uninterrupted streak of A+ ratings from July through December. While the current June 2026 score of 1.58% does not quite match the historic highs of early 2025, it sits comfortably above the median benchmarks of the past five years. This demonstrates that despite cyclical fluctuations, the underlying framework supporting the index has built a resilient baseline that prevents a return to the sub-one-percent levels seen in years prior.

A higher grade and elevated score carry substantial positive outcomes for the regional economic and creative ecosystem. Attaining an A+ rating indicates a fertile environment for intellectual property creation, elevated patent applications, and accelerated research and development. These high marks serve as a powerful signal to venture capitalists and external investors that the region possesses a highly productive, forward-thinking workforce and a collaborative business environment. Consequently, elevated metrics stimulate further investment, boost corporate confidence, and create a self-sustaining cycle of technological advancement and economic expansion.

Conversely, the negative implications of a lower score and depressed ratings present serious concerns for long-term growth. When the index drops into lower tiers, such as the C- rating seen in October 2024 or the D+ recorded in July 2022, it often reflects underlying friction such as reduced funding, regulatory obstacles, or a decline in entrepreneurial initiatives. These downward trends can dampen investor enthusiasm, stall critical research pipelines, and signal a loss of competitive advantage to neighboring regions. Understanding these historical contractions emphasizes the necessity of consistent strategic support to safeguard against prolonged periods of stagnation and economic vulnerability.

Discussion:

In June, the Iowa inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast 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.

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.