April 2026: 0.88% (D grade)

Nebraska inventionINDEX April 2026: 0.88% (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).

Nebraska inventionINDEX Scores – Last 12 months

Nebraska inventionINDEX Performance Analysis

The Nebraska inventionINDEX for April 2026 has experienced a notable downturn, falling to 0.88 percent with a D rating. This shift is particularly striking when contrasted with the performance in March 2026, where the score reached a healthy 1.23 percent and earned an A- rating. While the index began the year with a modest 1.00 percent in January, this latest figure represents a significant cooling of innovative activity within the state over a very short window. This sudden contraction highlights the volatility inherent in regional development metrics and suggests a pause in the momentum established at the conclusion of the first quarter.

When analyzing the broader 60-month historical trend, the current 0.88 percent score places Nebraska near its lowest recorded levels. The index reached its zenith in June 2021 with a score of 1.48 percent, and more recently saw sustained strength throughout late 2023 and early 2024 with multiple A+ ratings exceeding 1.30 percent. The April 2026 score is reminiscent of the challenging period in early 2025, when the index bottomed out at 0.82 percent in February. Compared to the five-year average, which generally hovers in the 1.05 percent to 1.15 percent range, the current performance indicates that the state is currently operating below its typical innovative capacity.

Achieving a higher grade, such as the A+ ratings seen periodically over the last five years, yields significant benefits for the local economy. A high inventionINDEX score typically reflects an environment rich in patent filings, successful startups, and robust corporate research and development. These periods of high activity tend to attract external venture capital and encourage the retention of highly skilled graduates from local universities. Furthermore, a strong rating boosts the state’s reputation as a competitive hub for modernization, which can lead to long-term infrastructure improvements and a more diversified economic base.

Conversely, a lower score and rating, such as the current D grade in April 2026, carry several negative implications for the state’s future growth. Persistent low scores can indicate a lack of investment in new technologies or a slowdown in the translation of research into marketable products. This environment can lead to a loss of competitiveness, where talented individuals might relocate to more innovative regions to pursue their careers. If the index does not recover toward the 1.10 percent threshold, the resulting stagnation could reduce overall productivity and make the region less attractive to businesses looking for a forward-thinking environment.

Discussion:

In April, the Nebraska inventionINDEX scored a negative 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 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 Nebraska office provides R&D tax credit consulting and advisory services to Omaha, Lincoln, Bellevue, Grand Island, and Kearney.

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.