January 2026: 1.14% (C grade)
Nevada inventionINDEX January 2026: 1.14% (C 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).
Nevada inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| January 2026 | 1.14% |
| Dec 25 | 1.28% |
| Nov 25 | 0.68% |
| Oct 25 | 0.74% |
| Sep 25 | 2.05% |
| Aug 25 | 0.94% |
| Jul 25 | 2.05% |
| Jun 25 | 0.65% |
| May 25 | 1.88% |
| Apr 25 | 1.17% |
| Mar 25 | 0.77% |
| Feb 25 | 0.91% |
| Jan 25 | 0.77% |
The Nevada inventionINDEX entered January 2026 with a score of 1.14%, earning a C rating. This performance represents a marginal decline from the 1.28% recorded in December 2025, yet it remains within a range of relative stability when compared to the broader five-year trajectory. Over the last 60 months, the index has navigated significant volatility, transitioning from the sluggish growth seen in 2021 and 2022 toward more robust performance windows in late 2024 and mid-2025. While the current C rating suggests a period of moderate activity, it stands as a testament to the state’s ability to maintain a positive growth floor even as short-term momentum shifts.
When viewing the current score against historical benchmarks, the contrast between the peaks and valleys is striking. The standout moment in the 60-month history occurred in February 2024, when the index surged to a remarkable 3.85% with an A+ rating, indicating an exceptional period of innovation and output. Conversely, the low point arrived in January 2022 with a score of -0.06% and a D- rating, reflecting a phase of contraction or stagnation. The current 1.14% score is significantly healthier than the frequent D+ and D ratings that characterized much of 2022 and early 2023, suggesting that the baseline for innovation in Nevada has risen over the last several years.
Achieving higher grades, such as the B and A ratings seen intermittently throughout 2024 and 2025, yields profound benefits for the regional economy. A higher inventionINDEX score typically correlates with an increase in patent filings, a more vibrant startup culture, and heightened interest from venture capitalists looking for the next breakthrough. These periods of high performance signal a competitive edge that attracts top-tier talent and fosters a collaborative environment where research and development can thrive. When the index reaches these upper echelons, it serves as a powerful indicator of economic health and forward-looking prosperity for the state.
On the other hand, sustained lower scores carry serious implications for the state’s long-term technological and economic competitiveness. Ratings in the D or C- range, such as the 0.31% seen in March and May of 2023, often point to a reduction in intellectual property creation or a lack of necessary infrastructure to support new ideas. If the score continues to trend downward or remains stagnant at a lower grade, Nevada risks falling behind neighboring hubs of innovation, which could lead to a brain drain as skilled professionals seek opportunities elsewhere. Maintaining a vigilant focus on the factors that drive the index remains essential to avoiding the inertia associated with these lower ratings and ensuring a return to the growth seen in years past.
Discussion:
In January, the Nevada inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable 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 Nevada office provides R&D tax credit consulting and advisory services to Las Vegas, Henderson, Reno, North Las Vegas, Sparks, Carson City, Fernley, Elko, Mesquite, and Boulder City.
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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
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