June 2026: 1.16% (A+ grade)

North Dakota inventionINDEX June 2026: 1.16% (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 Dakota inventionINDEX Scores

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

The North Dakota inventionINDEX for June 2026 achieved a robust score of 1.16% with an A+ rating, marking a clear positive shift from the preceding two months where the index held steady at 1.06% with an A- rating. When examined against the broader 60-month historical trajectory, this latest figure underscores a healthy recovery and positions the region close to its peak performance levels of 1.23% recorded in September 2025 and August 2023. Over the last five years, the index has demonstrated exceptional resilience, successfully rebounding from its historical low of 0.96% in October 2022 to maintain a baseline that stays at or above the 1.00% mark for nearly the entire multi-year period.

A deeper look into the historical dataset reveals a pattern of cyclical fluctuations followed by swift upward adjustments. For example, the opening months of 2026 witnessed a sharp acceleration from a modest C+ rating at 1.02% in January to an outstanding A+ rating at 1.19% by March. A similar trend occurred in the previous year, when the index dipped to a C rating of 1.00% in April 2025 before surging back to 1.19% in May 2025. This established behavior indicates that while temporary contractions occur, the overriding trend for North Dakota remains heavily anchored in the high-performing A-grade spectrum, signaling sustained institutional strength and economic adaptability.

The positive outcomes associated with securing a higher grade, such as the current A+ rating, are multifaceted and vital for the state’s economic development. An elevated inventionINDEX score indicates a flourishing environment for intellectual property creation, research and development breakthroughs, and commercial innovation. This strong performance bolsters external investor confidence, which in turn attracts critical venture capital and stimulates valuable public-private collaborations. Ultimately, high scores foster a high-tech job market, elevate productivity across diverse sectors, and secure North Dakota a prominent, competitive position within the national knowledge economy.

Conversely, the negative implications of a lower score and grade can significantly impede regional growth and progress. Periods of decline, exemplified by the historical low D rating in October 2022, highlight underlying vulnerabilities such as reduced capital investment, a slowdown in breakthrough discoveries, or potential regulatory bottlenecks. A consistently depressed score threatens to spark a talent drain as top-tier scientific and engineering professionals depart for more vibrant markets, while simultaneously discouraging external corporations from establishing roots in the area, thereby stalling vital economic diversification efforts.

Discussion:

In June, the North Dakota 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 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.