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

The Mississippi inventionINDEX for March 2026 closed at 0.93 percent, yielding a D+ rating. While this score remains in the lower tier of the index’s grading scale, it represents a second consecutive month of incremental growth following a sluggish start to the year in January at 0.77 percent. This trajectory suggests that the state’s innovation environment is slowly regaining its footing after a volatile 2025. Although the current standing is modest, the consistent month-over-month increase throughout the first quarter of 2026 offers a glimmer of stability for local stakeholders monitoring the state’s creative output and intellectual property trends.

Looking back across the 60-month horizon, the current March performance reflects a mixed historical narrative. The 0.93 percent score is a notable improvement over the 0.77 percent recorded in March 2025, yet it falls short of the B rating achieved in March 2024 at 1.18 percent. Interestingly, the current score exactly mirrors the performance from March 2023. These fluctuations underscore a cyclical pattern where Mississippi frequently struggles to maintain the momentum required to reach its historical peaks, such as the 1.60 percent A+ ratings seen in May 2022 and October 2023. The data indicates that the state is presently navigating a recovery phase, attempting to distance itself from the frequent F ratings that characterized the mid-2025 period.

The attainment of a higher inventionINDEX grade, particularly in the B to A+ range, acts as a catalyst for economic modernization and regional prestige. When the index surges, it signals to investors and policymakers that the state is producing intellectual property at a rate that significantly outpaces general economic growth. Such periods of high performance typically correlate with increased venture capital inflows, a more robust pipeline for technology transfer from universities to the private sector, and the expansion of high-tech manufacturing. A higher rating essentially validates the state’s innovation ecosystem, making it a more attractive destination for specialized talent and research-intensive businesses that drive long-term prosperity.

Conversely, a lower index score or a sustained residence in the D and F categories, as currently observed, presents substantial challenges for the state’s economic future. These low ratings often imply a stagnation in the development of new patents and a potential disconnect between academic research and commercial application. The negative implications include a reduced competitive edge compared to neighboring regions and the risk of a brain drain, as the state’s most innovative minds may seek opportunities in more dynamic markets. For Mississippi, remaining in the D+ range suggests that while the innovation engine is running, it is not yet firing on all cylinders, necessitating strategic interventions to move toward a more prosperous A-tier trajectory.

Discussion:

In March, the Mississippi inventionINDEX scored a negative sentiment which was higher than the previous year’s average but 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.