May 2026: 1.61% (B grade)

Kansas inventionINDEX May 2026: 1.61% (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).

Kansas inventionINDEX Scores – Last 12 months

The Kansas inventionINDEX for May 2026 registered at 1.61%, earning a solid B rating and signaling a continuing recovery for the state’s innovation economy. This latest figure represents a positive step upward from April 2026, which posted a score of 1.55% and a B- rating. This sequential growth builds on a broader turnaround from the low point experienced in March 2026, when the index dipped to a year-to-date low of 1.23% with a C+ rating. By climbing back into the mid-B territory over the subsequent two months, the index demonstrates near-term stability and resilience, shaking off the softer performance that characterized the end of the first quarter.

When evaluated within a wider 60-month historical scope, the May 2026 score of 1.61% aligns closely with the state’s long-term historical baseline. The overall historical average across this five-year timeline stands at approximately 1.65%, showing that current operations are functioning at a balanced and sustainable plateau. While the current score remains comfortably above the historical absolute floor of 1.05% recorded in December 2021, it sits below the peak eras of the index. Specifically, the all-time high was achieved in October 2023 with a score of 2.32% and an A rating. The yearly averages also showcase a gradual transition, peaking in 2023 at 1.78% before softening slightly through 2024 and 2025, positioning May 2026 as a stabilizing bridge for the region’s creative industries.

Achieving higher scores and securing top-tier grades within the inventionINDEX yields profound positive outcomes for the broader Kansas economy. When the index advances into the upper B and A brackets, it serves as a strong indicator of robust research and development activity, rapid patent generation, and high-quality technological output. This structural strength builds immense confidence among venture capital firms, angel investors, and corporate partners looking to fund cutting-edge projects. Higher grades stimulate high-wage job creation in technology, manufacturing, and agricultural science sectors, fostering a collaborative pipeline between private enterprises and prominent research universities while elevating the state’s competitive edge on a national scale.

Conversely, sliding into lower grading tiers or enduring prolonged contractions carries critical negative implications for long-term economic vitality. Dropping toward the lower C categories, reminiscent of the 1.05% trough in late 2021 or the 1.23% drop in March 2026, points to potential blockages in the commercialization pipeline, reduced corporate innovation expenditures, or regulatory obstacles. If these depressed scores persist, they can trigger a loss of investor confidence, causing vital capital to flee toward more dynamic markets. Furthermore, a stagnant inventive climate risks a domestic talent drain, as top-tier engineers, scientists, and entrepreneurs migrate to regions with more active funding opportunities, ultimately slowing down industrial diversification and overall macroeconomic resilience.

Discussion:

In May, the Kansas inventionINDEX scored a positive sentiment which was higher than the previous year’s average and 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 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.

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.