March 2026: 1.23% (C+ 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).
The Kansas inventionINDEX for March 2026 stands at 1.23%, yielding a C+ rating. This performance indicates a continued softening of the state’s innovation metrics through the first quarter of the year, as the score has retreated from 1.42% in January and 1.39% in February. Compared to the more robust performance seen in late 2025, specifically the November peak of 1.82% with a B+ rating, the current figure indicates a significant cooling in intellectual property momentum and commercialization efforts. This sequential decline suggests that the state is currently navigating a period of reduced innovative output as it enters the spring season.
Looking at the historical trajectory over the last 60 months, the current score resides in the lower quartile of the state’s performance range. Kansas has reached much higher altitudes in the past, notably in October 2023 when it achieved a five-year peak of 2.32% and an A rating. While the March 2026 score remains marginally better than the historical floor of 1.05% recorded in December 2021, the recent downward trend is a departure from the steady B-tier performance that characterized much of 2024 and 2025. This long-term context highlights a shift from a period of relative innovative strength toward a more cautious, mid-market standing.
Achieving a higher grade, particularly reaching back into the A or B+ tiers, yields substantial benefits for the Kansas economic landscape. A stronger index score typically acts as a catalyst for increased venture capital interest and specialized private equity investment, as it signals a fertile environment for technological disruption. When the score rises, it generally reflects a more efficient pipeline for transitioning laboratory research into patented, marketable assets. This high-performance status also bolsters the state’s ability to attract and retain top-tier scientific and engineering talent, which creates a virtuous cycle where innovation leads to further industrial diversification and high-wage job growth.
Conversely, a descent into lower ratings like the current C+ or the historical C range poses serious risks to the region’s long-term competitiveness. Low scores often imply a bottleneck in the innovation infrastructure or a lack of institutional support for emerging entrepreneurs. If the index remains depressed for an extended duration, the state may experience a brain drain effect where local innovators and startups migrate to more dynamic ecosystems with higher proven output. Furthermore, a consistently lower rating can dampen the enthusiasm of external stakeholders, making it increasingly difficult for local institutions to secure the large-scale funding necessary to fuel future technological breakthroughs.
In March, the Kansas 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 Kansas office provides R&D tax credit consulting and advisory services to Wichita, Overland Park, Kansas City, Olathe, Topeka, Lawrence, Shawnee, Manhattan, Lenexa, and Salina.
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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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