June 2026: 1.50% (A- grade)

Louisiana inventionINDEX June 2026: 1.50% (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).

Historical Louisiana inventionINDEX Scores

The Louisiana inventionINDEX score for the past 12 months is shown in the table below.

The Louisiana inventionINDEX for June 2026 stands at a strong 1.50 percent, earning an A- rating and demonstrating a healthy recovery from the lower marks observed earlier in the spring. When evaluated against the 61-month historical dataset, this current score sits comfortably above the long-term average of approximately 1.35 percent, indicating a robust upward trajectory in regional innovation and commercial development. This performance reflects a substantial rebound from April 2026, when the index dipped to 1.08 percent with a C rating, underscoring the volatile yet resilient nature of the regional inventive ecosystem over the analyzed multi-year timeline. By outpacing the historical baseline, the latest data suggests that current initiatives are successfully fostering a more dynamic environment for technological and creative advancements.

A deeper retrospective look at the index reveals dramatic fluctuations, highlighting both peak periods of productivity and significant contractions over the past five years. The absolute pinnacle of the index occurred in October 2023, when the score surged to an exceptional 3.45 percent, achieving an A+ rating that remains unmatched in the recorded history. Conversely, the dataset reveals recurring cyclical vulnerabilities, with historical lows of 0.82 percent and a D+ rating occurring in both August 2022 and August 2024. Analyzing these macroeconomic peaks and valleys allows stakeholders to identify seasonal patterns and structural shifts, helping to map out how regular economic cycles influence the continuous generation of new patents and ideas.

Securing a higher grade on the inventionINDEX yields numerous positive outcomes that extend across the broader economic spectrum. High scores, such as the current A- or the historical A+ peaks, signal a thriving intellectual property landscape that actively attracts venture capital, high-tech manufacturing, and specialized talent to the region. This elevated performance fosters greater investor confidence, which translates into increased funding for research and development while driving job creation in cutting-edge industries. Furthermore, a high rating strengthens the competitive advantage of the local market, encouraging collaborative academic and industrial partnerships that accelerate the commercialization of new technologies.

Conversely, a lower score on the index carries severe negative implications that can hamper long-term regional development. When the index falls into the C or D ranges, as seen during the historical troughs, it typically indicates a period of economic stagnation, reduced creative output, or a lack of supportive infrastructure for innovators. These depressed metrics can diminish market enthusiasm, discourage external investments, and lead to a brain drain as top-tier talent seeks more supportive environments elsewhere. Persistent low scores serve as a critical warning sign that existing frameworks may be failing to sustain innovation, necessitating immediate strategic interventions to prevent a decline in overall economic competitiveness.

Discussion:

In June, 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 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.