April 2026: 1.06% (A- grade)

North Dakota inventionINDEX April 2026: 1.06% (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 Dakota inventionINDEX Scores – Last 12 months

The North Dakota inventionINDEX for April 2026 sits at 1.06 percent with an A minus rating, reflecting a stable yet slightly tempered performance relative to the preceding months. While this current figure represents a decline from the high notes of 1.19 percent in March and 1.10 percent in February, it aligns closely with the state’s long-term median performance. Over the last five years, North Dakota has frequently returned to this 1.06 percent mark, suggesting a resilient floor for innovation even as the index navigates broader economic shifts. When compared to the historical low of 0.96 percent in October 2022, the current standing demonstrates significant progress and a solidified baseline for regional creative output.

Examining the sixty-month trajectory reveals a pattern of periodic surges followed by stabilization. The state reached its peak of 1.23 percent in both August 2023 and September 2025, which served as benchmarks for peak industrial and academic synergy. The current A minus rating suggests that while the state is not currently at its absolute ceiling, it remains well above the frequent dips into the C plus and C categories that characterized periods like late 2025 and early 2022. This performance suggests a maturing ecosystem that is increasingly capable of sustaining higher-tier ratings, moving away from the volatility that previously caused the index to oscillate more wildly toward lower grades.

Maintaining a higher grade, particularly in the A or A plus range, produces several tangible benefits for the North Dakota economy. A robust index score typically signifies a high volume of patent filings, increased research and development expenditure, and a flourishing startup environment. These elevated metrics serve as a beacon for venture capital firms looking for regions with high growth potential, often leading to a surge in localized investment. Additionally, a top-tier rating bolsters the state’s reputation as a hub for intellectual property, which aids in the retention of highly skilled graduates from regional universities and attracts global talent to the local workforce.

Conversely, a decline in the inventionINDEX score toward the C or D range carries concerning implications for long-term growth. Lower scores often reflect a stagnation in technological advancement or a reduction in the commercialization of new ideas, which can lead to a competitive disadvantage in the national marketplace. If the score remains depressed, the state risks a “brain drain” where innovators migrate to more active tech hubs, further depleting the local talent pool. Such downturns can also signal a tightening of private sector investment, as stakeholders may view a lower score as a sign of diminished returns on innovation-led projects, eventually slowing the overall pace of economic diversification.

Discussion:

In April, the North Dakota 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 a slight 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 Dakota office provides R&D tax credit consulting and advisory services to Fargo, Bismarck, Grand Forks, Minot, and West Fargo.

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.