April 2026: 0.80% (F grade)
Kentucky inventionINDEX April 2026: 0.80% (F 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).
Kentucky inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 0.80% |
| Mar 26 | 0.92% |
| Feb 26 | 0.88% |
| Jan 26 | 0.85% |
| Dec 25 | 0.92% |
| Nov 25 | 0.84% |
| Oct 25 | 0.86% |
| Sep 25 | 0.96% |
| Aug 25 | 0.86% |
| Jul 25 | 0.99% |
| Jun 25 | 0.95% |
| May 25 | 0.88% |
| Apr 25 | 1.00% |
The current Kentucky inventionINDEX score for April 2026 marks a significant low point in the five-year historical record provided. At 0.80 percent with an F rating, the index has reached its most critical level since the data began in April 2021. This recent performance reflects a steady erosion from the beginning of the year, falling from a D-minus in January to the current failing grade. When compared to the same month in previous years, such as the 1.00 percent recorded in April 2025 or the 0.92 percent in April 2024, the current trajectory suggests a concerning loss of momentum in the regional innovation landscape.
In contrast to the current downturn, historical data highlights periods of substantial strength and resilience. The peak of the last 60 months occurred in August 2021, when the score reached 1.26 percent, earning an A-minus rating. Throughout late 2022 and much of 2023, the index maintained a relatively stable position within the C range, frequently hovering around the 1.00 percent threshold. This stability indicates that the region is capable of sustaining a much higher level of inventive activity than what is currently observed. The shift from consistent C and B ratings in previous cycles to the current F rating underscores a departure from the historical baseline of productivity.
A higher grade on the inventionINDEX carries several positive outcomes for the regional economy and its stakeholders. When the score rises toward the A and B ranges, it typically signifies a robust ecosystem where intellectual property is being aggressively developed and commercialized. These higher marks often correlate with increased venture capital investment, a surge in patent filings, and a general environment of technological optimism. Such an atmosphere attracts top-tier talent and encourages established firms to expand their local operations, creating a virtuous cycle of growth and modernization that benefits the entire community.
Conversely, the negative implications of a lower score, such as the current 0.80 percent, are profound. A falling index suggests a stagnation in creative output and a potential decline in the resources allocated toward research and development. An F rating might indicate that local inventors are facing significant barriers to entry or that there is a lack of institutional support for new ideas. If this trend is not reversed, the region risks falling behind more innovative competitors, leading to a loss of high-value jobs and a diminished capacity for future economic adaptation. Addressing the root causes of this decline is essential to regaining the competitive edge seen in earlier years.
Discussion:
In April, the Kentucky inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed 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 Kentucky office provides R&D tax credit consulting and advisory services to Louisville, Lexington, Bowling Green, Owensboro, Covington, Richmond, Georgetown, Florence, Hopkinsville, and Elizabethtown.
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.
Are you eligible?
Why choose us?
Pass an Audit?
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.
Never miss a deadline again
Stay up to date on IRS processes
Discover R&D in your industry
R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
Our Fees
Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
Choose your state
