Minnesota inventionINDEX September 2026: 1.82% (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 September 2026 Minnesota inventionINDEX score of 1.82% with an A- rating marks a strong rebound, outperforming the historical 60-month mean of 1.64%. This latest metric demonstrates momentum compared to the mid-summer low of 1.39% (B-) in July 2026 and builds upon August 2026’s solid 1.74% (B+). Throughout 2026, the index has experienced notable fluctuations, reaching a high of 2.07% (A) in March before dipping into the C+ tier in April at 1.23%. The recent uptick over the past two months positions the state comfortably above its historical median, reflecting renewed vigor in regional invention metrics and commercial activity heading into the final quarter of the year.

Looking across the full 60-month historical dataset, Minnesota’s invention index demonstrates a pattern of cyclical expansion and contraction within a defined range. The peak score during this five-year period occurred in July 2025 at 2.59% with an A+ rating, followed closely by August 2023 at 2.33% (A+) and January 2024 at 2.32% (A+). Conversely, the historical nadir was recorded in April 2023 at 0.91% with a C- grade. The overall distribution shows that the index spent the majority of the past five years in the solid B category (B-, B, and B+), representing roughly two-thirds of all recorded months. The latest score of 1.82% sits within the upper quartile of historical readings, signaling that current innovation metrics are performing well above average baseline levels.

Maintaining higher scores and achieving top-tier grades yields substantial long-term benefits for the regional economy. Stronger scores signal robust intellectual property generation, active research pipeline development, and heightened commercialization velocity across local industries. High ratings like A and A+ serve as powerful beacons for institutional investors, venture capital firms, and top-tier technical talent seeking vibrant business environments. Furthermore, consistent performance in these higher brackets fosters local job growth, boosts tax revenues, and reinforces Minnesota’s reputation as an attractive nexus for technological research and corporate innovation.

On the other hand, sustained lower scores and declining letter grades carry significant negative implications for the state’s economic health. Drops into C-level territory, such as the 0.91% recorded in April 2023, signal potential bottlenecks in patent filings, reduced venture funding, or broader macroeconomic headwinds constraining research output. Prolonged weakness in the index risks capital flight to competing technical hubs, lower rates of startup formation, and reduced corporate reinvestment in local facilities. Tracking these shifts enables policymakers and business leaders to identify structural impediments early and implement targeted interventions to support regional innovation vitality.

Discussion:

In September, the Minnesota inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 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.