June 2026: 1.95% (B grade)

Michigan inventionINDEX June 2026: 1.95% (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 Michigan inventionINDEX Scores

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

The June 2026 Michigan inventionINDEX score of 1.95%, which translates to a solid B rating, marks a significant and encouraging turnaround compared to the performance observed earlier in the year. Throughout the first five months of 2026, the index consistently languished in the lower tiers, dipping to 0.89% in January, 0.85% in February, and hovering at a modest 1.09% in May. This latest surge to nearly two percent demonstrates a robust short-term recovery, breaking a multi-month streak of stagnation and indicating a sudden acceleration in regional inventive activity and market momentum as the summer season commenced.

Looking at the broader historical landscape over the last 60 months, the June 2026 score positions the index well above its historical baselines, though it remains below its absolute historical peaks. For instance, the index reached exceptional heights in September 2023 at 3.09% (A+) and October 2024 at 2.97% (A+). However, the current B rating is a dramatic improvement over the historical nadir of July 2023, when the index plummeted into negative territory at -0.11% (F). By maintaining a stable position near the two percent threshold, the current score reflects a resilient innovation ecosystem that has successfully stabilized after years of volatile macroeconomic shifts.

Achieving a higher grade on the inventionINDEX yields numerous positive outcomes for the regional economy, acting as a catalyst for sustainable growth. Higher ratings signify an influx of intellectual property creation, elevated research and development investments, and a thriving pipeline of commercializable technologies. This heightened level of innovation naturally attracts venture capital, fosters high-value job creation, and bolsters the state’s reputation as a competitive technological hub. Furthermore, strong scores cultivate an environment of corporate confidence, encouraging existing enterprises to expand operations and inspiring entrepreneurs to launch new projects.

Conversely, the negative implications of lower scores and depressed grades present a stark reminder of the risks associated with economic stagnation. When the index drops into the C or D ranges, it typically reflects a contraction in creative risk-taking, supply chain bottlenecks, or a tightening of credit that stifles new product development. Prolonged periods of low scores can lead to a loss of competitive advantage, causing top talent and institutional capital to migrate to more dynamic regions. Ultimately, lower grades warn of a thinning innovation pipeline, which threatens long-term industrial productivity and leaves the local economy vulnerable to broader market downturns.

Discussion:

In June, the Michigan 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 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 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.

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.