May 2026: 0.93% (D+ grade)

Mississippi inventionINDEX May 2026: 0.93% (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

The Mississippi inventionINDEX for May 2026 stands at 0.93 percent, earning a D-plus rating. While this represents a marginal recovery from the 0.85 percent (D) seen in April 2026, it marks the continuation of a constrained environment for innovation in the region. Over the last 60 months, the index has maintained a baseline historical average of 0.97 percent, positioning the current score just under the long-term norm. Annual performance data reveals a gradual deceleration over the years, with the yearly average dropping from a peak of 1.07 percent in 2023 down to 0.88 percent in 2025 and 0.87 percent for the first five months of 2026. This trajectory indicates that while the index is experiencing minor month-over-month fluctuations, it remains trapped in a lower-tier performance band.

A comprehensive look at the 60-month historical timeline highlights substantial volatility, characterized by brief periods of exceptional expansion followed by deep contractions. The index reached its absolute highest points in May 2022 and October 2023, achieving a score of 1.60 percent and an A-plus rating in both instances. Another significant surge occurred in November 2024 when the score reached 1.44 percent (A-plus). On the other hand, the index hit its lowest historical nadir of 0.52 percent with an F rating in both October 2021 and June 2025. The current score of 0.93 percent is comfortably above those absolute lows, yet it remains noticeably distant from the high-performing milestones of previous years, showing a clear lack of robust momentum.

Securing higher grades within the A and B tiers yields highly positive outcomes for Mississippi’s economic and technological landscapes. An elevated score signals a flourishing environment for intellectual property creation, corporate research investments, and collaborative academic ventures. These premium ratings serve as a critical validation tool, attracting out-of-state venture capital and angel investors who are looking to fund scalable startups. Furthermore, strong innovation indexes correlate with the growth of high-paying technical jobs, greater institutional funding, and a more competitive regional economy that can retain elite local talent.

Conversely, lower scores and depressed ratings within the D and F categories carry severe negative implications for the state. When the index consistently hovers below the historical baseline, it suggests systemic challenges such as limited access to early-stage capital, minimal commercialization of research, or a lack of incubator infrastructure. Prolonged exposure to lower grades can result in economic stagnation where local innovators migrate to more supportive ecosystems, causing an intellectual brain drain. Additionally, low ratings create a cycle of investor skepticism, making it increasingly difficult to secure funding for critical developmental projects and leaving the state vulnerable to falling behind national technological standards.

Discussion:

In May, 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 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 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.