New York inventionINDEX September 2026: 0.99% (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 York inventionINDEX Scores

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

The New York inventionINDEX recorded a score of 0.99% and a rating of C- for September 2026, marking a modest rebound from the mid-summer lows of 0.81% in August and 0.87% in July. While this month-over-month uptick offers a brief respite from late-summer compression, the current index score remains notably below the 60-month historical mean of 1.06%. When placed against the broader timeline, September 2026 reflects a lingering deficit compared to peak historical performance periods, such as November 2021 when the index reached an all-time high of 1.68% with an A+ rating, and August 2023 when it hit 1.57% with an A rating.

A broader multi-year examination reveals a structural transition from high-grade volatility toward lower baseline scores over the last five years. Annual performance averages have drifted steadily downward from 1.12% in 2022 and 1.10% in 2023 to 1.07% in 2024, 0.94% in 2025, and 0.91% across 2026 to date. Higher rating brackets like A and B, which appeared regularly from 2021 through 2024, have become noticeably absent in recent months, replaced primarily by C- and D-tier ratings. The recent September 0.99% mark stabilizes the index above December 2022’s historical trough of 0.76%, yet it highlights a continued consolidation within the lower C-grade corridor.

Higher inventionINDEX scores and ratings generate significant strategic and economic advantages across regional innovation ecosystems. Elevated grades, particularly those reaching B or A thresholds, signal robust intellectual property generation, accelerated technology transfer, and heightened confidence among institutional investors. A higher score typically correlates with increased venture capital deployment, expanded research and development expenditures, and rapid commercialization of nascent technologies. Furthermore, strong ratings bolster regional competitiveness, drawing elite talent and corporate partnerships seeking to capitalize on a vibrant inventive climate.

Conversely, sustained lower scores and grades carry considerable risks for long-term economic vigor and technological leadership. Persistent placement in the D and lower C ranges indicates potential friction within the innovation pipeline, such as cautious capital allocation, regulatory hurdles, or diminished filing activity. Prolonged periods of depressed scores can lead to reduced investor interest, delayed product development timelines, and the eventual migration of inventive talent to higher-performing tech corridors. Rebuilding momentum toward historic averages will require targeted reinvestment in fundamental research and streamlined commercialization channels.

Discussion:

In September, the New York inventionINDEX scored a negative sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast 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 York office provides R&D tax credit consulting and advisory services to New York City, Buffalo, Rochester, Yonkers, Syracuse, Albany, New Rochelle, Mount Vernon, Schenectady, Utica, White Plains, Troy, Niagara Falls, Binghamton, Rome, Long Beach, Poughkeepsie, North Tonawanda, Jamestown and Ithaca

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.