April 2026: 1.23% (C+ grade)
Minnesota inventionINDEX April 2026: 1.23% (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).
Minnesota inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 1.23% |
| Mar 26 | 2.07% |
| Feb 26 | 1.86% |
| Jan 26 | 1.43% |
| Dec 25 | 1.86% |
| Nov 25 | 1.60% |
| Oct 25 | 1.46% |
| Sep 25 | 1.82% |
| Aug 25 | 1.55% |
| Jul 25 | 2.59% |
| Jun 25 | 1.39% |
| May 25 | 1.74% |
| Apr 25 | 1.74% |
The April 2026 Minnesota inventionINDEX score of 1.23 percent, resulting in a C-plus rating, reflects a notable cooling period following a robust start to the year. This figure represents a significant drop from the high-performance levels observed in the first quarter of 2026, where the state reached a 2.07 percent A rating in March and an 1.86 percent A-minus in February. When compared specifically to previous Aprils, the current score shows a downward trend in year-over-year performance. It falls short of the 1.74 percent B-plus recorded in April 2025 and the 1.72 percent from April 2024, although it remains higher than the five-year April floor of 0.91 percent seen in 2023.
Looking at the broader 60-month historical context, the current score of 1.23 percent sits comfortably above the state’s historical lows but significantly below its established peaks. Over the last five years, Minnesota has demonstrated a capacity for exceptional output, evidenced by the 2.59 percent A-plus reached in July 2025 and the 2.32 percent peak in January 2024. For much of the latter half of 2025, the state maintained a presence in the A and B ranges, indicating a highly productive innovation pipeline. The current slide into the C-tier suggests a temporary loss of that creative energy, placing the state in a middling position compared to its more frequent high-tier historical baseline.
A higher grade on the inventionINDEX, specifically in the A or B ranges, serves as a vital indicator of a healthy and aggressive regional economy. When the index hits these marks, it typically signifies a surge in patent applications, increased research and development spending, and a high level of confidence among local entrepreneurs. These periods of high productivity are essential for attracting venture capital and maintaining a competitive edge in sectors like medical technology and advanced manufacturing. A strong rating effectively markets the state as a hub for innovation, drawing in specialized talent and encouraging established corporations to invest in local expansions and long-term projects.
On the other hand, the negative implications of a lower score or a persistent C rating are significant. A falling index suggests a stagnation in the development of intellectual property or a lack of resources available to support the commercialization of new ideas. If the score remains suppressed, it may indicate that the state is losing its competitive advantage to more innovative regions, which can lead to a migration of top-tier talent and a decrease in high-value job creation. Furthermore, a lower rating can result in a more risk-averse investment climate, making it difficult for early-stage startups to secure the funding necessary to move their products from the lab to the marketplace. Addressing the causes of these seasonal dips is critical for returning the state to its peak innovative potential.
Discussion:
In April, the Minnesota inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 Minnesota office provides R&D tax credit consulting and advisory services to Minneapolis, Saint Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, Maple Grove, Woodbury, and St Cloud.
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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