North Dakota inventionINDEX July 2026: 1.02% (C+ 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 July 2026 North Dakota inventionINDEX score of 1.02%, paired with a C+ rating, represents a notable pull-back when compared to the surrounding historical dataset. Coming directly off a strong performance in June 2026 (1.16%, A+) and solid figures throughout early 2026, the July score sits below the 61-month historical average of 1.08%. While a 1.02% score is not the absolute lowest level observed over the five-year span, it matches previous soft periods such as January 2026, December 2025, and August 2025. This downturn highlights a recurring seasonal or cyclical moderation in regional inventive output, placing current performance six basis points below the multi-year mean and fourteen basis points below recent spring benchmarks.

Across the full 61-month evaluation period from July 2021 through July 2026, the index demonstrates a strong overall foundation punctuated by intermittent variance. Historical scores range from a peak of 1.23% (A+) achieved in August 2023 and September 2025 to a low of 0.96% (D) recorded in October 2022. High-performing months dominate the long-term trend, with the top-tier A+ rating occurring 22 times, accounting for over one-third of all monthly observations. Middle-tier ratings of A, A-, and B comprise another 26 months, while lower-tier ratings of C+, C, and D appear far less frequently. This distribution indicates that North Dakota maintains a high baseline for innovation activity, though periodic contractions to the 1.00% to 1.04% corridor remain a standard structural feature of the metric.

Achieving higher inventionINDEX scores yields substantial positive outcomes for North Dakota’s economic and technological ecosystem. Ratings in the A- to A+ range, corresponding to scores from 1.06% to 1.23%, reflect heightened intellectual property generation, robust patent filing velocity, and vigorous commercialization efforts across state research hubs. Superior marks enhance regional competitiveness, making the state more attractive to angel investors, venture capital firms, and corporate research partners. Furthermore, elevated index scores correlate with expanded public-private research initiatives, high-value job creation in STEM fields, and stronger resilience against broader macroeconomic headwinds.

Conversely, lower scores such as the current 1.02% C+ grade carry negative implications for long-term growth if sustained over extended periods. Dips into the C and D range signal operational bottlenecks, reduced seed-stage funding, or temporary lulls in technology transfer from academic institutions to the marketplace. Persistent lower ratings risk dampening investor confidence, slowing business incubation, and causing local talent retention challenges. By tracking these historical shifts, state policymakers and industry leaders can identify underlying constraints during softer periods, deploying targeted capital and institutional support to restore the index toward top-tier performance.

Discussion:

In July, the North Dakota inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar 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.