June 2026: 1.90% (A+ grade)

North Carolina inventionINDEX June 2026: 1.90% (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).

Historical North Carolina inventionINDEX Scores

The North Carolina inventionINDEX score for the past 12 months is shown in the table below.

The North Carolina inventionINDEX has demonstrated remarkable resilience and growth in its most recent tracking period, culminating in a score of 1.90% and an A+ rating for June 2026. This latest figure represents a meaningful upward trajectory when compared to the immediate prior months, recovering significantly from the 1.51% noted in April 2026 and outperforming the 1.73% recorded in May 2026. When viewed against the broader historical timeline spanning the last 60 months, the current score sits comfortably above the long-term average of approximately 1.74%. While it does not quite reach the historical peaks of 2.47% observed in October 2024 and July 2025, the recent performance confirms that the state is sustaining a highly competitive environment for innovation and development.

Achieving a higher grade and elevated score on the index yields multiple positive outcomes that strengthen the regional economy. An A+ rating indicates that the foundational elements supporting innovation, such as patent filings, research investments, and technological entrepreneurship, are operating at peak efficiency. This superior performance enhances North Carolina’s reputation as a premier hub for technological advancement, which helps attract top-tier global talent, venture capital funding, and corporate expansions. Furthermore, a thriving invention ecosystem fosters job creation across advanced sectors, encourages collaboration between academic institutions and private enterprises, and ultimately drives long-term economic prosperity.

Conversely, a lower score on the index brings several negative implications that warrant careful strategic attention. When the index dips, as seen during the historical low of 1.12% with a C+ rating in December 2021, it signals potential stagnation or systemic bottlenecks within the state’s innovation pipelines. Lower metrics often reflect reduced funding for research and development, a slowdown in corporate intellectual property production, or a loss of competitive positioning relative to other emerging tech corridors. Prolonged periods of depressed scores can lead to reduced investor confidence, an outflow of skilled professionals to more dynamic regions, and a slower rate of commercializing new technologies, which ultimately dampens economic growth.

Reviewing the multi-year history reveals that while fluctuations are inherent to economic and technological cycles, North Carolina has successfully maintained an overall high standard, frequently securing grades in the A range. The progression from the sluggish performance in late 2021 to the consistent excellence seen throughout 2025 and mid-2026 illustrates a successful optimization of the state’s innovation resources. By carefully monitoring these shifts, policymakers and business leaders can leverage high-scoring periods to build sustainable infrastructure while proactively addressing the root causes of any downward trends. Maintaining this current momentum will be essential for ensuring that the state remains a leading force in national and international markets.

Discussion:

In June, the North Carolina inventionINDEX scored a positive sentiment which was higher than the previous year’s average and 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.

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.