June 2026: 1.93% (A- grade)

Minnesota inventionINDEX June 2026: 1.93% (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 Minnesota inventionINDEX Scores

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

The Minnesota inventionINDEX closed out its most recent recorded month in June 2026 with a robust score of 1.93 percent, securing an A- rating that demonstrates a solid upward trajectory compared to the volatile performance of the preceding months. This recent score represents a noteworthy recovery from the earlier months of the year, particularly April 2026, which dipped to a modest 1.23 percent and a C+ rating. When viewed against the historical average across this multi-year dataset, which hovers around 1.64 percent, the June 2026 figures indicate that innovation and inventive activity within the region are performing significantly above baseline levels. This current standing reflects a resilient rebound, outperforming forty of the previous sixty months in the sequence and positioning the index well within its upper historical tier.

An analysis of the historical peaks reveals the profound benefits that accompany elevated grades within the index. The highest score on record occurred in July 2025, reaching a stellar 2.59 percent with an A+ rating, while other notable surges were witnessed in August 2023 at 2.33 percent and January 2024 at 2.32 percent. Higher scores and top-tier marks typically signal a thriving economic and creative ecosystem characterized by increased patent applications, robust research funding, and heightened entrepreneurial confidence. When the inventionINDEX achieves these elevated brackets, it serves as a powerful catalyst for economic development, drawing venture capital to the region, attracting premier talent, and fostering a collaborative environment where technological breakthroughs can transition rapidly from concepts to commercial successes.

Conversely, the dataset also highlights periods of retraction, demonstrating the negative implications that materialize when the index falls to lower levels. The historical low point was registered in April 2023, when the index plummeted to 0.91 percent, earning a C- rating, which was accompanied by low scores in March 2023 at 1.01 percent and January 2022 at 1.03 percent. A depressed inventionINDEX score generally points to underlying economic friction, such as diminished investment in research and development, regulatory bottlenecks, or a temporary slowdown in regional commercialization efforts. These lower grades imply that local businesses and academic institutions may be facing hurdles in securing intellectual property, which can ultimately lead to stagnating productivity, reduced competitiveness in the global market, and a cautious contraction in innovation-led employment opportunities.

Evaluating the full historical spectrum over the past five years underscores a cyclical yet resilient pattern for the Minnesota inventionINDEX, showing that periods of decline are frequently met with subsequent periods of rapid expansion. The movement from the low ratings of early 2023 to the high peaks of mid-2025, followed by the stabilization observed in mid-2026, indicates a dynamic framework capable of navigating macroeconomic shifts. Monitoring these fluctuations provides stakeholders with crucial foresight, enabling policymakers and business leaders to implement supportive measures during downturns and capitalize on momentum during growth periods. Ultimately, the long-term data suggests that despite inevitable short-term contractions, the underlying foundation of regional innovation remains strong and structurally equipped for sustained progress.

Discussion:

In June, the Minnesota 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 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.

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.