June 2026: 0.85% (D grade)

New Jersey inventionINDEX June 2026: 0.85% (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 New Jersey inventionINDEX Scores

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

An examination of the historical data for the New Jersey inventionINDEX over the past 60 months reveals a dynamic trajectory, culminating in the June 2026 score of 0.85 percent with a D rating. When compared to the historical baseline, this latest metric sits slightly below the five-year average of approximately 0.92 percent, indicating a period of moderate contraction in the regional innovation landscape. While the current score reflects a modest recovery from the challenging lows seen earlier in the year, such as the 0.71 percent recorded in January 2026, it remains significantly beneath the historical high of 1.47 percent achieved in August 2025. This long-term overview underscores a fluctuating environment where recent months have struggled to match the more robust periods of growth observed in previous years.

Securing a higher grade and elevated index score carries substantial positive implications for New Jersey economic and technological vitality. Periods of strong performance, such as the exceptional A plus rating in August 2025 or the steady B grades in mid-2022, signify a thriving ecosystem rich in patent activity, research breakthroughs, and entrepreneurial momentum. Higher scores act as a powerful signal to venture capitalists, corporate partners, and skilled talent, positioning the state as an attractive hub for high-yield investments and cutting-edge developments. This elevated confidence often accelerates the commercialization of new technologies, stimulates job creation across specialized sectors, and bolsters the state competitive edge on both a national and global scale.

Conversely, lower index scores and depressed grades bring notable negative implications that can hamper regional progress. When the score falls into the failing range, as observed with the historical low of 0.68 percent in November 2024 and the repetitive F ratings in early 2026, it points to systemic friction or stagnation within the innovation pipeline. Low metrics frequently reflect reduced funding availability, regulatory hurdles, or a decline in high-impact intellectual property filings, which can suppress entrepreneurial enthusiasm. Over prolonged periods, a lower index score risks creating an atmosphere of economic caution, leading to talent migration to more active jurisdictions and a slowdown in industrial modernization.

To regain the momentum seen in peak historical cycles, understanding these trends becomes essential for guiding policy and strategic investments. The marginal uptick from the April 2026 low of 0.76 percent to the June closing of 0.85 percent demonstrates resilience, yet it reinforces that the state is currently operating in a defensive posture regarding inventive output. Bridging the gap between the current D rating and past high-performing benchmarks will require targeted support for research institutions, enhanced public-private partnerships, and robust frameworks designed to de-risk early-stage development. By addressing these foundational elements, New Jersey can work to reverse recent downward pressures and re-establish a stable upward trajectory in the index.

Discussion:

In June, the New Jersey inventionINDEX scored a negative 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 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

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.

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