Mississippi inventionINDEX August 2026: 1.02% (C 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 Mississippi inventionINDEX Scores

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

The Mississippi inventionINDEX recorded a score of 1.02% with a C rating for August 2026, holding steady from July 2026 and placing the state slightly above its 60-month historical average of 0.98%. This stability follows a significant peak in June 2026, when the index climbed to 1.52% with an A+ rating. The current standing represents a clear rebound from the lower trajectory observed during early 2026, where scores lingered between 0.77% and 0.93% with D-range ratings.

Placing the recent performance in a broader 60-month context reveals substantial volatility over the past five years. Historical troughs occurred during June 2025 and October 2021, when the index dropped to 0.52% with F ratings, alongside additional low points of 0.68% in July and August 2025. Conversely, the highest historical marks reached 1.60% with A+ ratings in May 2022 and October 2023. At 1.02%, the index reflects mid-tier equilibrium, successfully avoiding the deep contractions of 2025 while remaining below the peak operational levels demonstrated in earlier cycles.

Higher inventionINDEX scores yield direct benefits for the regional economic and entrepreneurial ecosystem. Stronger marks, such as the A and A+ grades earned periodically across the timeline, signal heightened innovation, robust patent filing activity, and increased commercial viability. These elevated scores foster investor confidence, attract venture capital funding, and encourage institutional partnerships. A higher grade demonstrates competitive strength, enabling Mississippi to retain top talent, support research commercialization, and stimulate tech-driven economic growth.

Conversely, sustained lower scores carry notable negative implications for the state economic outlook. Sub-1.00% scores and F ratings point toward stalled innovation pipelines, reduced commercialization activity, or broader macroeconomic friction. Prolonged periods of low performance can deter outside investment, weaken local startup momentum, and put the region at a competitive disadvantage compared to regional peers. Maintaining scores above the 1.00% threshold remains crucial for securing capital, encouraging research, and building long-term resilience.

Discussion:

In August, the Mississippi inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a 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.