North Carolina inventionINDEX September 2026: 1.80% (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 recorded a score of 1.80% in September 2026, earning an A+ rating and demonstrating strong performance relative to historical metrics across the 60-month period. This score sits comfortably above the 60-month historical average of 1.75%, highlighting a solid operational baseline. While the September figure represents a minor dip from August 2026’s 1.93% and remains below peak historical highs of 2.47% recorded in both July 2025 and October 2024, it marks a key recovery from July 2026’s 1.61% score. Compared to the 60-month low of 1.12% in December 2021, current metrics reflect sustained long-term expansion.

A broader analysis of the 60-month dataset reveals remarkable overall consistency, with the state capturing an elite A+ rating in 32 of the 60 recorded months. The index experiences natural cyclical variation, periodically shifting between mid-tier marks such as B+ or A- and upper-tier A+ ratings as patent cycles and research commercialization milestones mature. Performance has stabilized at significantly higher levels over recent years compared to late 2021 and early 2022, when ratings dropped to C+ and B- levels. This upward trajectory underscores a maturing innovation ecosystem capable of maintaining elevated research and development output over extended horizons.

Achieving higher index scores and top-tier ratings yields clear strategic advantages for North Carolina’s economic ecosystem. A higher score acts as a powerful signal to venture capital firms, corporate partners, and federal funding bodies that regional innovation activity is thriving. High grades foster investor confidence, unlock capital deployment for early-stage ventures, and accelerate the commercialization of disruptive technologies. Additionally, elite performance enhances regional prestige, attracting top-tier scientific talent, university researchers, and growing technology companies looking to expand into vibrant innovation hubs.

Conversely, lower index scores and downgraded ratings introduce notable economic risks. A declining score typically points to slowdowns in intellectual property production, reduced research expenditures, or bottlenecks in technology transfer pipelines. Lower ratings can induce caution among prospective investors, potentially restricting venture capital flow to local startups and university spin-offs. Prolonged periods of lower scores risk placing the state at a competitive disadvantage against rival technology corridors, increasing the risk of talent migration and diminished long-term economic expansion.

Discussion:

In September, the North Carolina inventionINDEX scored a positive 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 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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