Nebraska inventionINDEX August 2026: 0.94% (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).

Historical Nebraska inventionINDEX Scores

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

Over the 61-month period from August 2021 through August 2026, the Nebraska inventionINDEX maintained a historical average score of approximately 1.09%, reflecting cyclical shifts in regional innovative activity. Recent performance in July and August 2026 shows the index standing at 0.94% with a D+ rating, marking a noticeable pullback relative to historical baselines. While these latest figures reflect an improvement over the 60-month low of 0.82% recorded in February 2025, they remain well below peak performance levels, such as the 1.35% achieved in January 2023. This trajectory indicates that while baseline commercial activity persists, the regional innovation climate is currently navigating a cooler period compared to prior growth cycles.

A broader comparison across annual averages reveals a gradual recalibration of index scores over time. The index posted its strongest sustained performance during 2022 and 2023, averaging 1.14% and 1.12% respectively, bolstered by frequent ratings in the A and A+ tiers. Performance moderated slightly in 2024 with an average of 1.12%, followed by increased volatility in 2025 as the yearly average dipped to 1.04%. Through August 2026, the year-to-date average sits at 1.02%, displaying sharp swings between temporary rebounds like March 2026 at 1.23% (A-) and immediate contractions such as April 2026 at 0.88% (D). These fluctuations underline a broader trend where short-term surges are quickly met with cooling phases.

Higher inventionINDEX scores—typically seen when ratings reach the B to A+ range above 1.10%—yield significant positive outcomes for Nebraska’s innovation ecosystem. Elevated grades signify robust patent filing activity, heightened research productivity, and stronger confidence among venture capital investors. During these strong cycles, research institutions and emerging enterprise ventures experience improved capital allocation, accelerated technology transfer, and an increased capacity to attract technical talent to the region. Stronger scores ultimately foster a resilient environment where local intellectual property transitions efficiently into commercialized market solutions.

Conversely, lower inventionINDEX scores—such as recent D+ marks or the historical low F rating—carry negative implications for regional commercial growth. Extended stretches of lower scores signal cautious research expenditures, risk aversion among funding sources, and potential bottlenecks in intellectual property development. When the index drops below the 1.00% benchmark, early-stage enterprises face tighter liquidity constraints and slower market adoption. Prolonged weakness risks encouraging investment capital and technical talent to migrate toward higher-performing markets, emphasizing the need for strategic reinvestment in local innovation channels.

Discussion:

In August, 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.