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February 2026: 0.85% (D grade)

Mississippi inventionINDEX February 2026: 0.85% (D 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).

Mississippi inventionINDEX Scores – Last 12 months

Month inventionINDEX Score
February 2026 0.85%
Jan 26 0.77%
Dec 25 1.02%
Nov 25 1.02%
Oct 25 1.10%
Sep 25 1.27%
Aug 25 0.68%
Jul 25 0.68%
Jun 25 0.52%
May 25 0.77%
Apr 25 0.85%
Mar 25 0.77%
Feb 25 0.77%

The Mississippi inventionINDEX for February 2026 stands at 0.85 percent, resulting in a D rating. While this represents a modest improvement from the 0.77 percent recorded in January 2026, the overall trajectory over the past six months indicates a period of relative cooling. In September 2025, the index reached a B+ with a score of 1.27 percent, but subsequent months saw a sharp decline. The current slight upward movement suggests a potential stabilization, though the state remains significantly distanced from the more robust performance levels seen in the earlier parts of this five-year period.

Looking at the historical data over the last 60 months, the current score resides well below the peak performance marks. The index achieved its highest rating of A+ in both October 2023 and May 2022, with scores reaching 1.60 percent. Conversely, the state has navigated through several challenging troughs, such as the 0.52 percent lows seen in June 2025 and October 2021. The current D rating places Mississippi in a familiar but suboptimal middle ground, highlighting a persistent volatility that has historically prevented sustained long-term growth in the local invention and innovation sector.

When the inventionINDEX achieves a higher grade, such as an A or B, it signals a thriving ecosystem for intellectual property and technological advancement. These elevated scores typically correlate with increased patent filings, higher levels of research and development funding, and a more attractive environment for venture capital. A stronger rating suggests that Mississippi is effectively leveraging its academic and industrial resources to foster a culture of creativity. This environment not only attracts high-tech businesses to the region but also ensures that local talent remains within the state to drive economic progress and diversification.

On the other hand, the implications of maintaining lower scores in the D or F range are concerning for the state long-term competitiveness. Sustained periods of low innovation activity can lead to economic stagnation and a gradual loss of intellectual capital as skilled professionals seek opportunities in more dynamic markets. When the index fails to reach its potential, it often reflects a lack of infrastructure support or a decrease in collaborative projects between the public and private sectors. To avoid these negative outcomes, the current data suggests that targeted interventions and renewed investment are necessary to shift the momentum back toward the high-performance benchmarks established in previous years.

Discussion:

In February, the Mississippi 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 Mississippi office provides R&D tax credit consulting and advisory services to Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Meridian, Tupelo, Greenville, Olive Branch, and Horn Lake.

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.

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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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