New Hampshire inventionINDEX August 2026: 1.27% (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).

Historical New Hampshire inventionINDEX Scores

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

Analyzing the 60-month historical dataset reveals that New Hampshire’s inventionINDEX has experienced a dynamic, cyclical trajectory characterized by dramatic surges and intermittent contractions. Over the five-year span, the index achieved prominent historical peaks in August 2023 at 2.54% (A+), March 2024 at 2.39% (A+), and October 2023 at 2.30% (A+), establishing strong benchmarks for regional innovation. Recent performance in mid-2026 demonstrated impressive momentum, reaching 2.01% (A+) in May and 2.06% (A+) in June. However, this high-performing period was followed by a sharp retrenchment in July 2026 to 0.91% (C-), before modestly rebounding to 1.27% (B-) in August 2026. This recent fluctuation echoes earlier volatility observed in early 2026, when the index fell to a dataset low of 0.68% (D) in January before bouncing back above 2.00% standard thresholds.

Attaining higher scores and top-tier grades, such as the A+ marks recorded in June 2026 (2.06%) and July 2025 (2.09%), yields significant economic advantages for New Hampshire. Elevated scores reflect a flourishing intellectual property ecosystem where patent generation outpaces baseline historical expectations. These high-grade periods signal robust operational efficiency within state research institutions, university core laboratories, and private technology sector enterprises. Higher scores serve as a magnetic beacon for external venture capital, encourage new venture creation, and attract top-tier scientific talent. Furthermore, strong innovation sentiment reinforces state-level tax credit incentives, encouraging continuous private investment in advanced research and development projects that drive long-term employment growth.

Conversely, sustained drops into lower scoring tiers, as seen during January 2026 (0.68%, D), April 2026 (0.86%, D+), and July 2026 (0.91%, C-), carry notable negative implications. Lower scores signify an underperformance in commercial patent output relative to broader economic trends, indicating potential friction points in research translation or funding deployment. Such declines can undermine institutional investor confidence, lead to severe capital allocation slowdowns, and increase the risk of brain drain toward competing technology corridors. Additionally, protracted periods of lower scores restrict the broader economic multiplier effect, reducing commercial license agreements and dampening high-value manufacturing and tech jobs across the state.

Comparing the recent August 2026 rating of 1.27% (B-) against the multi-year history illustrates an ecosystem in stabilization following a sharp mid-year drop. While August 2026 falls well below historic highs such as the 2.54% recorded in August 2023, it represents a clear positive recovery from the preceding month’s 0.91% score and aligns closely with mid-tier historical averages around 1.30%. Maintaining an upward trajectory away from lower D and C tiers toward consistent B and A ratings will require focused support for public-private incubators, enhanced technology transfer office efficiency, and targeted research policy incentives. By leveraging historical momentum, New Hampshire can re-establish the top-tier innovation standing achieved during its peak historical cycles.

Discussion:

In August, the New Hampshire inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward 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.