Louisiana inventionINDEX August 2026: 1.29% (B 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 registered at 1.29% with a B rating in August 2026, demonstrating a notable rebound from the previous month’s score of 0.98% (C-). This latest figure matches the exact score from August 2025 (1.29%, B) and aligns closely with the overall 60-month historical average of 1.34%. When evaluated against the broader context of 2026, which opened strong at 1.61% (A) in January before experiencing a mid-year decline down to 1.08% (C) in April, the current B grade indicates a stabilization of baseline inventive activity across the state.

Across the 60-month historical timeline, Louisiana’s index exhibits distinct cyclical patterns, characterized by pronounced autumn peaks and periodic summer contractions. The index achieved its highest mark in October 2023 at 3.45% (A+), following significant historic highs in October 2022 at 2.13% (A+) and October 2024 at 2.40% (A+). Conversely, the lowest recorded scores occurred in August 2022 and August 2024, both dropping to 0.82% (D+). Annual averages have maintained reasonable consistency, ranging from a peak annual average of 1.49% in 2023 to a low of 1.24% in 2025, highlighting a resilient core of innovation punctuated by seasonal filing momentum.

Sustaining higher inventionINDEX scores and top-tier ratings brings substantial economic and strategic advantages to Louisiana. Ratings in the A and high-B tiers reflect elevated patent activity, active commercialization of local research, and a healthy pipeline of new intellectual property. High scores bolster investor confidence, drawing private equity and venture capital to regional startup incubators. Additionally, top-grade performance reinforces partnerships between university research centers and commercial industries, accelerating technological development and fostering high-wage career opportunities.

Conversely, prolonged periods of lower scores and ratings in the C or D range signal structural challenges within the local innovation pipeline. Dips in the index typically indicate reduced research output, backlogs in patent filings, or decreased corporate R&D allocation. Persistent lower grades risk weakening the state’s economic competitiveness, making it more difficult to retain high-skilled technical talent or attract external grant funding. Reversing low performance requires targeted investments in local entrepreneurs, expanding workforce training programs, and strengthening state-level support for emerging industries.

Discussion:

In August, 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.