Louisiana inventionINDEX Scores – Last 12 months

The Louisiana inventionINDEX for February 2026 stands at 1.13 percent, resulting in a C+ rating. This figure represents a notable decline from the robust performance observed in January 2026, when the state achieved a 1.61 percent score and an A rating. This recent shift marks a transition from a period of high innovative activity to a more conservative output. When comparing this to the same period in previous years, the current score is lower than the 1.34 percent recorded in February 2025 and the 1.55 percent seen in February 2024. The data suggests that while the state started the year with significant momentum, the short-term trend has encountered a period of deceleration.

Looking at the broader 60-month historical horizon, Louisiana has experienced significant fluctuations in its innovation metrics. The pinnacle of this period occurred in October 2023, when the index reached a remarkable 3.45 percent with an A+ rating. Current levels are substantially below those historical highs and sit closer to the lower-middle range of the five-year spectrum. However, the state remains above its historical troughs, such as the 0.82 percent lows recorded in both August 2022 and August 2024. The recurring spikes typically seen in the month of October over the last few years suggest a seasonal or cyclical nature to the state’s highest creative outputs which the current February score does not yet reflect.

The attainment of a higher grade, such as the A or A+ ratings frequently seen in the historical table, brings significant advantages to the regional economy. High scores indicate a thriving ecosystem for intellectual property, research development, and the commercialization of new ideas. These peak periods often correlate with increased interest from venture capitalists and a greater ability to retain top-tier technical talent within the state. A robust inventionINDEX score serves as a signal to the global market that Louisiana is a leader in progress, fostering an environment where entrepreneurship can flourish and high-value jobs are created through new industrial applications.

Conversely, a lower score and rating carry implications that warrant careful monitoring. A dip into the C+ range, as seen in the most recent February data, may indicate a temporary stagnation in the patent pipeline or a slowdown in the transition from research to market-ready innovation. If a downward trend persists, it can lead to a loss of competitive advantage relative to other regions, potentially discouraging long-term investment in local startups. These periods of lower activity highlight the importance of consistent support for research institutions and the need for strategic policy adjustments to ensure the state returns to the high-performance tiers established in previous years.

Discussion:

In February, the Louisiana 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 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.

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