June 2026: 1.18% (A- grade)

Missouri inventionINDEX June 2026: 1.18% (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).

Historical Missouri inventionINDEX Scores

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

The Missouri inventionINDEX has demonstrated considerable volatility over the last sixty months, culminating in a recent score of 1.18 percent and an A- rating in June 2026. This performance reflects a steady position that remains above the historical average of approximately 1.15 percent across the five-year horizon. While the June 2026 metric marks a slight contraction from the preceding spring months—notably May 2026, which achieved a historical peak of 1.36 percent and an A+ rating—it represents a substantial recovery from the cyclical downturns observed in early 2026, when the index dipped to 1.03 percent in January. When compared to the broader historical data, the current index level underscores an enduring resilience, staying well clear of the historical troughs of 0.99 percent recorded in December 2022 and July 2021.

Reviewing the long-term trajectory reveals periodic fluctuations that reflect shifting economic and innovative dynamics within the region. For instance, the index experienced notable strength during the mid-2025 period, sustaining high marks such as the 1.30 percent recorded in July 2025 before softening into the winter season. Similar historical patterns appear in previous years, where strong summer and autumn performances, such as the 1.27 percent scores in July and October 2024, often preceded temporary contractions into the low 1.00 percent range. This cyclical behavior suggests that while the index frequently touches exceptional heights, it routinely faces corrective periods where ratings slip into the B or C categories, making the recent stabilizing A- grade a reassuring indicator of sustained operational health.

Achieving a higher score and a premium grade, such as the A+ attained in May 2026 or the solid A-level performances peppered throughout the timeline, yields substantial macro-level benefits for the regional ecosystem. High grades typically signal enhanced innovation efficiency, robust patenting activity, and elevated institutional collaboration, which collectively foster an environment ripe for economic expansion. These optimal metrics serve as a powerful marketing tool to attract venture capital, high-caliber talent, and corporate investment, as external stakeholders interpret top-tier ratings as a reliable indicator of low risk and high return potential. Furthermore, sustained high marks bolster institutional confidence, encouraging local enterprises and research bodies to pursue ambitious, forward-looking initiatives that solidify Missouri’s status as a leader in technological advancement.

Conversely, a decline in the inventionINDEX score to lower categories, such as the C rating seen in January 2026 or the historical C- lows, carries troubling implications for the state’s innovation pipeline. Lower metrics often indicate systemic bottlenecks, reduced research funding efficiency, or a slowdown in commercialization efforts that can stifle regional growth. When ratings languish in these lower tiers, it can discourage external investors, leading to capital flight and a reduction in the development of high-tech employment opportunities. Additionally, prolonged periods of depressed scores can erode the region’s competitive edge relative to other markets, signaling a need for strategic intervention, structural reforms, or increased public-private partnerships to revitalize the underlying innovative infrastructure.

Discussion:

In June, the Missouri inventionINDEX scored a positive 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 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.