LOUISIANA INVENTIONINDEX | JANUARY 2026

January 2026: 1.61% (A grade)

Louisiana inventionINDEX January 2026: 1.61% (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).

Louisiana inventionINDEX Scores – Last 12 months

 

Month	inventionINDEX Score
January 2026	1.61%
Dec 25	1.40%
Nov 25	0.87%
Oct 25	1.34%
Sep 25	1.29%
Aug 25	1.29%
Jul 25	1.24%
Jun 25	1.45%
May 25	1.03%
Apr 25	1.29%
Mar 25	1.24%
Feb 25	1.34%
Jan 25	1.13%

The Louisiana inventionINDEX began 2026 on a strong note, recording a score of 1.61% and earning an “A” rating. This performance represents a meaningful improvement over the final quarter of 2025, where the index fluctuated significantly, dropping as low as 0.87% in November before recovering to 1.40% in December. By returning to an “A” level in January, the state demonstrates a renewed momentum in its creative and industrial output. This current score is also notably higher than the 1.13% recorded in January 2025, suggesting that the local innovation ecosystem is currently operating at a more efficient capacity than it was at the same time last year.

Reviewing the historical data from the last 60 months reveals a pattern of cyclical volatility characterized by extraordinary peaks and occasional troughs. The highest score in this five-year window occurred in October 2023, when the index reached a remarkable 3.45% with an “A+” rating. Other notable surges were observed in October 2024 (2.40%) and March 2021 (2.13%), indicating periods of intense intellectual property activity. In contrast, the index has occasionally dipped into the “D+” range, specifically in August 2022 and August 2024, when scores fell to a five-year low of 0.82%. The current 1.61% placement is comfortably above the historical average, positioning the state well within its upper-tier performance bracket.

A higher grade on the inventionINDEX, such as the current “A” rating, yields several positive outcomes for the regional economy. High scores typically correlate with increased patent filings, greater venture capital interest, and a more vibrant environment for both startups and established technology firms. When the index trends upward, it signals to stakeholders that the infrastructure for research and development is healthy and productive. This fosters a climate of confidence, encouraging both public and private entities to invest more heavily in local intellectual property, which ultimately drives long-term job creation and economic diversification within the state.

Conversely, lower scores and grades like “C” or “D+” present several negative implications that can hinder regional progress. A decline in the index often suggests a period of stagnation where new ideas are not being effectively commercialized or where regulatory and financial hurdles are impeding the creative process. Frequent low ratings can lead to a loss of competitive edge against neighboring regions, potentially resulting in a loss of top-tier talent as researchers and entrepreneurs seek more active innovation hubs elsewhere. While the index has experienced these troughs in the past, the recovery to the current 1.61% level is a vital sign of resilience, indicating that the state is successfully mitigating the risks associated with previous periods of lower output.

Discussion:

In January, the Louisiana 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 a slight 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 Louisiana office provides R&D tax credit consulting and advisory services to New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles, Kenner, Bossier City, Monroe, Alexandria and Houma.

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.