May 2026: 1.36% (A+ grade)

Missouri inventionINDEX May 2026: 1.36% (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).

Missouri inventionINDEX Scores – Last 12 months

The Missouri inventionINDEX for May 2026 achieved a historic high of 1.36 percent, earning a top-tier A-plus rating. This outstanding performance marks a significant and rapid acceleration from the beginning of the year, when January 2026 hit a low point of 1.03 percent with a C rating. Following that initial dip, the index demonstrated a powerful upward trajectory over the spring, climbing to 1.07 percent in February, 1.28 percent in March, and 1.22 percent in April, before hitting its current peak. This recent surge indicates a robust expansion in the state’s innovation sector, showing that the region has not only shaken off winter stagnation but is currently operating at an unprecedented level of momentum compared to any other period in the rolling timeline.

When evaluated against the broader 60-month historical timeline, the current score of 1.36 percent stands out well above the long-term baseline average of approximately 1.15 percent. A review of past cycles reveals that the index has historically been tightly bounded, rarely breaching the 1.30 percent threshold, with previous notable peaks occurring in August 2022 at 1.32 percent and July 2025 at 1.30 percent. Conversely, the historical nadir for the index was recorded at 0.99 percent, yielding a C-minus rating in both July 2021 and December 2022. The gradual rise in annual averages, moving from 1.14 percent in 2021 to a robust 1.19 percent average over the first five months of 2026, demonstrates a steady, structural strengthening of the region’s creative and industrial output over the five-year span.

Achieving higher grades, such as the A-plus and A ratings observed throughout the spring of 2026, yields highly favorable outcomes for Missouri’s economic landscape. An elevated inventionINDEX score reflects a surge in high-value patent applications, accelerated technological development, and intense research and development activity across public and private sectors. These premium ratings act as a powerful signal to institutional investors and venture capital firms, showcasing the state as a low-risk, high-reward destination for capital allocation. Consequently, this influx of funding drives the commercialization of breakthroughs, nurtures early-stage startups, and creates high-paying, specialized jobs that elevate the regional standard of living.

On the other hand, a drop in scores and the assignment of lower grades, such as the C and C-minus ratings seen in late 2021 and late 2022, bring serious negative implications for the state’s growth. Lower ratings indicate systemic friction, which could stem from decreased corporate innovation budgets, regulatory hurdles, or a lack of institutional support for researchers. If a depressed score persists, it can lead to investor skepticism and a severe funding drought for critical technological projects. Ultimately, a prolonged downturn in the index threatens to trigger an intellectual brain drain, as top-tier talent and entrepreneurial minds migrate to more vibrant, higher-scoring ecosystems, causing the region to lose its competitive edge.

Discussion:

In May, the Missouri inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar 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 Missouri office provides R&D tax credit consulting and advisory services to Kansas City, St Louis, Springfield, Columbia, Independence, Lees Summit, Ofallon, St Joseph, St Charles, and Blue Springs.

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.