May 2026: 1.11% (B- grade)

Nebraska inventionINDEX May 2026: 1.11% (B- 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

The Nebraska inventionINDEX registered a score of 1.11% with a B- rating in May 2026, marking a notable recovery from the previous month and settling precisely in line with its 60-month historical average of 1.11%. This latest figure demonstrates a stable return to form for the state’s innovation ecosystem, following a turbulent period in early 2026 where scores dipped as low as 0.88% in April. When compared against the broader five-year timeline, the current score reflects a moderate, sustainable baseline of creative and commercial activity rather than the aggressive growth spikes or deep contractions observed in prior years.

A deeper examination of the historical data highlights a narrative of ongoing volatility within Nebraska’s patent and technological development landscape. The index reached its ultimate high toward the beginning of this sequence in June 2021, achieving a score of 1.48% and an A+ rating, while another strong peak emerged in January 2023 at 1.35%. Conversely, the system hit its lowest trough in February 2025, collapsing to a score of 0.82% and earning an F rating. The historical progression shows that Nebraska regularly fluctuates between these extremes, indicating that the local innovation pipeline responds sensitively to broader macroeconomic shifts and regional funding cycles.

Achieving higher inventionINDEX scores and securing top-tier grades like an A or A+ yields highly favorable outcomes for Nebraska’s economic future. Elevated scores point to an accelerated rate of intellectual property creation, robust entrepreneurial engagement, and heightened investment in research and development sectors. This vibrant climate serves as a powerful signal to venture capitalists and major corporations, drawing fresh capital and elite technical talent into the state. Ultimately, a strong grade builds a reputation for regional ingenuity, providing local businesses with the confidence to expand and pioneer new industry standards.

On the other hand, lower scores and failing grades carry severe negative implications for the state’s competitive edge. When the index slides into the D or F range, it indicates a stagnation in creative pipelines, reduced financial support for emerging technologies, or structural friction in bringing new ideas to market. These downturns can lead to a loss of momentum, triggering capital flight as investors look to more dynamic regions, and driving away top-tier innovators who seek a more supportive ecosystem. Maintaining a steady upward trajectory remains essential for protecting Nebraska from economic inertia and ensuring long-term technological relevance.

Discussion:

In May, the Nebraska 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 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.