New Jersey inventionINDEX September 2026: 0.95% (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).

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 New Jersey inventionINDEX data for September 2026 reveals a score of 0.95 percent, earning a C- rating. This marks a notable uptick compared to the trailing five months, where scores languished between 0.78 percent and 0.85 percent with ratings ranging from F to D. The September result indicates a potential turning point after a particularly difficult stretch in early to mid-2026, which recorded severe troughs in January at 0.71 percent and April at 0.76 percent. While a C- grade remains below optimal benchmark levels, the month-over-month trajectory demonstrates modest upward momentum relative to the depressed scores seen throughout much of the current calendar year. Placing the recent figures into a broader historical context across the 60-month timeline demonstrates a clear shift toward lower innovation metrics over time. The historical pinnacle of the dataset occurred in August 2025, when the index spiked to an impressive 1.47 percent with an A+ rating, building on strong previous peaks such as May 2022 at 1.20 percent and August 2023 at 1.13 percent. However, these high-water marks stand in stark contrast to the frequent downturns observed in recent years, including the historical low of 0.68 percent recorded in November 2024. Over the full 60-month period, the state transitioned from regularly maintaining C and B ratings between 2021 and 2023 to enduring prolonged periods dominated by D and F ratings throughout late 2024, 2025, and 2026. Achieving higher inventionINDEX scores and superior letter grades yields substantial economic and structural advantages for New Jersey’s technology ecosystem. Scores rated C or higher signify that patent development is actively outpacing or expanding alongside Gross Domestic Product growth, reflecting a thriving research environment. Strong ratings instill confidence among institutional investors, venture capital firms, and multinational corporations looking to expand research and development operations. Elevated performance attracts top-tier scientific talent, strengthens institutional commercialization pipelines, and establishes the region as a premier hub for high-value intellectual property generation. Conversely, a persistent trend of lower scores and sub-C ratings carries severe long-term negative implications for the state’s economic vitality. Ratings of D and F signal that local patent production is falling behind economic expansion, pointing to potential bottlenecks in research funding, commercialization pipelines, or industrial innovation. Sustained underperformance risks chilling private equity investment and encouraging emerging startups to relocate to competing innovation corridors. Over time, failing to reverse these lower ratings can lead to reduced corporate competitiveness, workforce erosion in key technology sectors, and sluggish economic diversification across the state.

Discussion:

In September, 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 in contrast 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 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:

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