March 2026: 0.93% (D+ grade)
New Jersey inventionINDEX March 2026: 0.93% (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).
New Jersey inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| March 2026 | 0.93% |
| Feb 26 | 0.77% |
| Jan 26 | 0.71% |
| Dec 25 | 0.87% |
| Nov 25 | 0.85% |
| Oct 25 | 0.82% |
| Sep 25 | 0.94% |
| Aug 25 | 1.47% |
| Jul 25 | 0.98% |
| Jun 25 | 0.78% |
| May 25 | 0.90% |
| Apr 25 | 0.87% |
| Mar 25 | 0.78% |
The New Jersey inventionINDEX for March 2026 shows a modest recovery to 0.93 percent, securing a D+ rating. This shift provides a slight reprieve from the first two months of the year, where the index bottomed out at 0.71 percent and 0.77 percent, both resulting in failing grades. While this movement represents a sequential improvement, the state remains well below the levels seen during its periodic peaks, suggesting that the local innovation ecosystem is currently navigating a challenging period of re-stabilization.
When examining the 60-month horizon, the current score remains significantly lower than the outlier performance of August 2025, when the index surged to 1.47 percent and achieved an A+ rating. Historically, New Jersey has struggled to maintain consistent momentum, with the data showing frequent fluctuations primarily within the D and C ranges. The March 2026 performance is notably weaker than the levels achieved in early 2021 and mid-2022, indicating that the recent recovery has a substantial distance to cover before matching previous high-water marks of 1.20 percent or higher.
Achieving a higher grade in the inventionINDEX carries profound benefits for the state’s economic vitality. A rating in the A or B range typically correlates with an increase in patent applications, a surge in venture capital investments, and the expansion of research-driven industries. Such scores signal to the national market that New Jersey is a competitive hub for intellectual property and technological breakthroughs. This favorable environment not only attracts high-skilled talent but also encourages local entrepreneurs to take the risks necessary for transformative growth, ultimately bolstering the state’s tax base and global reputation.
Conversely, the prevalence of lower scores, such as the D and F ratings seen throughout much of the current table, presents serious implications for New Jersey’s industrial future. A sustained low score indicates a potential stagnation in the pipeline of new ideas and a reduction in the resources allocated to research and development. This lack of growth can lead to a loss of competitive edge against neighboring tech corridors, potentially resulting in a migration of talent and capital to more innovative regions. Addressing the underlying factors behind these lower ratings is essential to preventing a long-term decline in the state’s capacity for invention.
Discussion:
In March, the New Jersey inventionINDEX scored a negative 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 New Jersey office provides R&D tax credit consulting and advisory services to Newark, Jersey City, Paterson, Elizabeth, Edison, Woodbridge, Lakewood, Toms River, Hamilton, and Trenton.
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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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