North Carolina inventionINDEX March 2026: 1.82% (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 North Carolina inventionINDEX for March 2026 demonstrates a powerful upward trajectory, closing the first quarter at 1.82 percent with an A+ rating. This performance marks a significant recovery and steady climb from the start of the year, when the index sat at a more modest 1.51 percent in January. When compared to the previous month’s score of 1.68 percent, the current data suggests that the state’s innovation engine is accelerating. This recent momentum underscores a period of high productivity and creative output that distinguishes the current economic climate from the more volatile fluctuations observed in previous years.

In the broader context of the last 60 months, North Carolina has moved significantly beyond its historical lows. For instance, the December 2021 score of 1.12 percent represented a challenging trough for the state, yet the subsequent years have seen a transformation into a consistent high-performer. While the current 1.82 percent is robust, it remains below the exceptional historical peaks of 2.47 percent recorded in both July 2025 and October 2024. Nevertheless, the state has successfully maintained an A-range average for the majority of the last two years, indicating that the foundational structures supporting research and development are now more resilient than they were at the beginning of the decade.

The positive outcomes associated with maintaining an A+ grade are extensive and vital for the state’s long-term prosperity. Such a high score typically reflects a surge in patent applications, a vibrant startup ecosystem, and increased interest from venture capital firms looking for the next technological breakthrough. For North Carolina, this translates into high-value job creation and a strengthened reputation as a premier hub for biotechnology, information technology, and advanced manufacturing. When the index remains in this top-tier bracket, it fosters a virtuous cycle where success attracts the elite global talent necessary to sustain further industrial and scientific advancement.

Conversely, the negative implications of a lower score, such as the dips into the B or C ranges seen in late 2021 and early 2022, provide a cautionary tale. A falling index often signals a stagnation in the intellectual property pipeline or a reduction in the capital available for high-risk, high-reward projects. If the score remains low, the state risks a loss of its competitive edge, potentially leading to a migration of talent to more innovative regions. Such downturns can indicate that regulatory or economic hurdles are stifling the commercialization of new ideas. Therefore, the current recovery toward an A+ rating is not merely a statistical victory but a necessary shield against the economic inertia that lower scores represent.

Discussion:

In March, the North Carolina inventionINDEX scored a positive 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 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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