May 2026: 1.19% (C+ grade)

Louisiana inventionINDEX May 2026: 1.19% (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).

Louisiana inventionINDEX Scores – Last 12 months

The Louisiana inventionINDEX for May 2026 registered at 1.19%, securing a C+ rating and indicating a minor sequential improvement from the preceding month. In April 2026, the index contracted to 1.08%, which yielded a flat C rating and marked a low point for the current calendar year. This slight upward movement of 0.11 percentage points in May stops a downward trend that began after a robust March 2026 reading of 1.40% with a B+ rating. The initial months of 2026 have proven to be highly variable, starting strong in January at 1.61% with an A rating before experiencing consecutive adjustments. The current shift toward a C+ shows near-term stabilization, although the regional innovation pipeline has yet to recapture its early winter momentum.

When evaluated against the broader 60-month historical data, the May 2026 score places Louisiana slightly below its long-term baseline. The overall historical average for this five-year timeline is approximately 1.34%, meaning current creative and technical output is underperforming relative to the state’s historical norm. Looking back, the index has experienced dramatic highs and lows, with a recurring pattern of exceptional performance in the autumn months. The absolute historical pinnacle occurred in October 2023, when the index surged to 3.45% with an A+ rating, followed by another notable spike to 2.40% in October 2024. Conversely, the historical floor sits at 0.82% with a D+ rating, recorded in both August 2022 and August 2024. By remaining at 1.19%, the current metric resides in a familiar middle tier, avoiding extreme contractions but reflecting a gradual multi-year deceleration from the 2023 annual peak of 1.49%.

Achieving higher scores and top-tier grades within the inventionINDEX yields profound positive outcomes for the broader Louisiana economy. When the index advances into the high B and A categories, it reflects a surge in research and development expenditures, active patent originations, and a thriving entrepreneurial density. This strong performance serves as a powerful market signal that builds confidence among out-of-state venture capitalists, angel investors, and corporate partners. A higher score translates directly into accelerated job growth in high-wage technology, advanced manufacturing, and aerospace sectors. It also fosters essential development pipelines between private industries and the state’s major research universities, ultimately driving sustainable long-term economic expansion.

Conversely, lingering in lower grading tiers or suffering sudden contractions carries severe negative implications for regional economic health. Dropping toward the D or low C brackets indicates structural blockages in moving intellectual property from laboratories to the marketplace, reduced corporate innovation budgets, or regulatory obstacles. If these lower scores become a permanent feature of the economic landscape, investor confidence can quickly deteriorate, leading to capital flight toward more competitive state markets. Furthermore, a stagnant innovative environment risks a critical domestic talent drain, as top-tier engineers, scientists, and tech entrepreneurs migrate to regions with more active funding availability, which undermines Louisiana’s efforts to diversify its industrial base.

Discussion:

In May, the Louisiana inventionINDEX scored a positive 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 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.