January 2026: 0.89% (C- grade)
Michigan inventionINDEX January 2026: 0.89% (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).
Michigan inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| January 2026 | 0.89% |
| Dec 25 | 1.49% |
| Nov 25 | 1.30% |
| Oct 25 | 1.46% |
| Sep 25 | 1.33% |
| Aug 25 | 1.30% |
| Jul 25 | 2.01% |
| Jun 25 | 1.26% |
| May 25 | 1.33% |
| Apr 25 | 1.68% |
| Mar 25 | 0.80% |
| Feb 25 | 1.20% |
| Jan 25 | 1.01% |
The January 2026 inventionINDEX score of 0.89% represents a contraction in performance compared to the preceding months of 2025. Throughout much of the prior year, the index maintained a steady position within the C+ range, averaging approximately 1.35%. This recent shift to a C- rating indicates a loss of momentum as the new year begins, marking a departure from the relatively stable trajectory observed during the second half of 2025. When viewed against the broader 60-month horizon, this latest figure sits toward the lower end of the spectrum, suggesting a period of cooling after several years of fluctuating innovation metrics.
Examining the historical data reveals that the current score is substantially lower than the peak performance levels reached in late 2023 and late 2024. For instance, September 2023 saw a record high of 3.09% with an A+ rating, followed by another strong showing of 2.97% in October 2024. While the current 0.89% is a significant decrease from those heights, it remains safely above the historical low of -0.11% recorded in July 2023. The data demonstrates a pattern of volatility where periods of high achievement are often followed by sharp corrections, placing the current downward trend within a recurring cycle of expansion and consolidation.
A higher grade on the inventionINDEX signifies a robust environment for intellectual property development and economic expansion. When the score climbs toward the A range, it reflects increased patent filings, heightened research and development investment, and a flourishing ecosystem for entrepreneurs. These elevated scores often correlate with stronger competitive advantages in the marketplace and a higher capacity for technological breakthroughs. A high rating serves as a beacon for venture capital and talent, indicating that the region is a fertile ground for sustainable growth and industrial modernization.
Conversely, a lower score such as the current 0.89% carries negative implications for the regional innovation landscape. A C- rating suggests a potential stagnation in creative output or a tightening of resources dedicated to new product development. If this trend persists, it may signal a loss of competitive edge against other regions that are maintaining higher levels of intellectual activity. Reduced scores often precede a slowdown in job creation within high-tech sectors and can reflect a broader cautiousness among stakeholders. Monitoring these shifts is essential for identifying when strategic interventions are necessary to revitalize the innovation pipeline and ensure long-term economic resilience.
Discussion:
In January, the Michigan inventionINDEX scored a negative 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 Michigan office provides R&D tax credit consulting and advisory services to Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Dearborn, Livonia, Troy, Westland, Farmington Hills, Kalamazoo, Wyoming, Rochester Hills, Southfield, Taylor, Pontiac, St Clair Shores and Royal Oak.
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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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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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