March 2026: 1.42% (B grade)

New Hampshire inventionINDEX March 2026: 1.42% (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).

New Hampshire inventionINDEX Scores – Last 12 months

The New Hampshire inventionINDEX for March 2026 stands at 1.42 percent with a B rating, signaling a period of stabilization following a quarter of extreme volatility. This latest figure represents a retreat from the exceptional 2.06 percent A+ rating recorded in February 2026, yet it remains a significant recovery from the 0.68 percent D rating observed in January 2026. When compared to the historical trajectory of the last five years, the current score suggests that the state is returning to its baseline performance after the dramatic fluctuations that characterized the transition into the new year. While 1.42 percent is respectable, it sits slightly below the consistent high-performing streaks seen in 2021 and 2023, where ratings frequently climbed above the 2.00 percent threshold.

In a broader historical context, the March 2026 score highlights the cyclical nature of innovation within the region. The index reached its 60-month peak in August 2023 at 2.54 percent and saw similar strength in March 2024 at 2.39 percent. The current B rating indicates that while New Hampshire remains a competitive environment for new ideas, it has not yet recaptured the sustained momentum of those peak years. Historically, the state has demonstrated a resilient ability to bounce back from low points, such as the 0.89 percent C- rating in late 2021, and the current upward movement from the January 2026 trough suggests a similar trend toward renewed creative output and industrial activity.

The positive outcomes of maintaining a higher grade, particularly in the A and B+ ranges, are multifaceted and essential for long-term prosperity. High scores typically reflect a surge in patent filings, a robust pipeline of research and development, and a favorable climate for venture capital investment. When the inventionINDEX is elevated, it serves as a powerful signal to national and international markets that New Hampshire is a fertile ground for technological advancement and entrepreneurship. This fosters an environment where high-growth startups can thrive, attracting top-tier talent and encouraging established corporations to expand their local footprint. These periods of high performance often correlate with increased economic diversification and a more resilient workforce.

Conversely, the negative implications of a lower score, such as the sharp dip to 0.68 percent in early 2026, present significant risks to the state’s competitive standing. Low ratings often indicate a slowdown in the commercialization of new technologies and a potential stagnation in intellectual property generation. If these scores persist, they can lead to a loss of momentum that discourages investment and prompts local innovators to seek more supportive ecosystems elsewhere. A declining index acts as a warning sign for policymakers and business leaders that the infrastructure for innovation may be facing hurdles, such as reduced funding or regulatory friction. Monitoring these metrics is crucial for identifying these vulnerabilities before a temporary downturn becomes a systemic decline in regional ingenuity.

Discussion:

In March, the New Hampshire inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a 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 New Hampshire office provides R&D tax credit consulting and advisory services to Manchester, Nashua, Concord, Derry, and Dover.

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.