North Carolina inventionINDEX February 2026: 1.68% (A 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).

North Carolina inventionINDEX Scores – Last 12 months

The February 2026 inventionINDEX for North Carolina stands at 1.68 percent, representing a commendable shift toward the top tier of performance with an A rating. This latest figure shows a notable recovery from January 2026, when the index dipped to 1.51 percent and a B+ rating. While the current score remains below the historical peaks seen in July 2025 and October 2024, where values reached 2.47 percent, the rebound suggests a stabilizing trend in the state’s innovative capacity. Comparing this to the sixty-month starting point of 1.48 percent in February 2021, the state has demonstrated a long-term upward trajectory in its foundational innovation metrics.

High scores within the inventionINDEX, particularly those reaching the A+ threshold, signify a robust environment for technological advancement and economic growth. When the index surpasses the 1.80 percent mark, it often correlates with increased venture capital interest, higher rates of patent filings, and a more aggressive expansion of the local research and development sector. These elevated ratings provide a signal to global stakeholders that North Carolina maintains a fertile ground for new enterprises and academic breakthroughs. Such a strong performance creates a self-sustaining cycle where success attracts the necessary talent and funding to drive further scientific and commercial milestones.

Conversely, a decline in the score brings several negative implications for the regional economy. When the index falls toward the lower end of the historical spectrum, such as the 1.12 percent recorded in December 2021, it suggests a period of relative stagnation or a lack of competitive momentum. Lower ratings like C+ or B- can lead to cautious behavior among investors and may reflect a slowdown in the translation of research into marketable products. A persistent downward trend might also indicate that other regions are outpacing the state in securing intellectual property or that local infrastructure is failing to support the needs of modern inventors.

Looking at the five-year historical overview, North Carolina shows a resilient pattern characterized by frequent visits to the A+ rating level. Despite the inevitable fluctuations inherent in a sixty-month window, the state has consistently managed to pull itself out of lower-tier rankings to maintain a position of leadership. The movement from 1.51 percent in January 2026 back up to 1.68 percent in February 2026 demonstrates this recurring ability to regain ground. By analyzing these shifts, policymakers and industry leaders can better understand the factors that drive innovation and work to ensure the index remains within the high-performance range for the years ahead.

Discussion:

In February, the North Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 North Carolina office provides R&D tax credit consulting and advisory services to Charlotte, Raleigh, Greensboro, Durham, Winston Salem, Fayetteville, Cary, Wilmington, High Point, Greenville, Asheville, Concord, Gastonia, Jacksonville, Chapel Hill, Rocky Mount, Huntersville, Burlington, Wilson and Kannapolis.

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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