North Carolina inventionINDEX August 2026: 1.93% (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 60-month historical data for the North Carolina inventionINDEX highlights a sustained evolution toward higher performance levels and structural innovation maturity. In the earlier segments of the timeline, specifically late 2021, the index registered its lowest figures, falling to 1.12% with a C+ rating in December 2021. Across the five-year trajectory, North Carolina successfully moved past these lower baselines, establishing a trend where A and A+ ratings became the dominant standard. Highlights across this period include peak scores of 2.47% in both October 2024 and July 2025, demonstrating the state’s capacity for high-capacity intellectual property output relative to overall economic activity.

Focusing on recent metrics, the August 2026 score of 1.93% with an A+ rating marks a notable rebound from July 2026, which dipped to 1.61% and an A- rating. This latest figure aligns closely with previous strong August standings across the timeline, matching the 1.93% recorded in August 2022 and approaching the 2.00% registered in August 2021. Furthermore, the August 2026 rating demonstrates clear strength when compared against August 2024’s 1.50% score and August 2025’s 1.75% result. This multi-year comparison underscores a high degree of resiliency, maintaining high-tier output even through regular monthly fluctuations.

Achieving elevated scores and maintaining an A+ grade yields significant economic and strategic benefits for North Carolina. Higher ratings reflect a dynamic research environment where patent generation outpaces baseline economic expansion, sending positive signals to venture capitalists and institutional investors. This strong performance helps secure essential funding for emerging technological sectors, accelerates the commercialization of university-backed research, and creates an attractive destination for top scientific and engineering talent. Ultimately, top-tier index standings help establish a self-reinforcing ecosystem of high-value job creation and economic competitiveness.

Conversely, lower index scores and downward rating migrations carry noticeable strategic disadvantages. When the score falls toward the lower tiers seen in late 2021, it suggests a potential bottleneck in translating research and development into commercial intellectual property. Sustained lower ratings can signal constrained corporate R&D budgets or sluggish patent production relative to GDP growth, which may diminish investor enthusiasm over time. Additionally, prolonged weakness risks exposing the state to competitive pressures, potentially causing skilled innovators and capital to drift toward higher-performing regional tech corridors.

Discussion:

In August, 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 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.

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.