North Dakota inventionINDEX September 2026: 1.00% (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 September 2026 North Dakota inventionINDEX score settled at 1.00 percent, earning a C rating and marking a noticeable contraction from the preceding month. In August 2026, the state recorded an impressive 1.10 percent score with an A+ rating, reflecting a vibrant innovation climate that quickly moderated entering autumn. Against the 61-month historical average of approximately 1.08 percent, the current figure falls below the baseline norm and sits near the lower boundary of recorded observations over the five-year spectrum. While temporary pullbacks have occurred periodically throughout the tracking window, this latest step down highlights a momentum shift from the robust performance observed during the spring and summer of 2026.

A broader evaluation of the 60-month dataset reveals a cyclical trajectory defined by recurring peaks and brief retrenchments. The index achieved its peak readings of 1.23 percent with A+ ratings in August 2023 and September 2025, demonstrating North Dakota’s capacity for rapid commercialization and heightened intellectual property generation. Conversely, the historical minimum reached 0.96 percent with a D rating in October 2022, serving as a reminder of periods marked by structural slowdowns. Over the course of the evaluated timeframe, top-tier ratings of A or A+ appeared in more than half of the recorded months, underscoring that current readings below 1.02 percent remain outlier events relative to the state’s typical economic expansion cycles.

Achieving higher grades within the inventionINDEX yields substantial economic dividends for regional industries and local enterprise. Ratings in the A- to A+ spectrum signal high rates of patent filings, robust research collaboration, and efficient technology transfer across university and private sectors. These elevated metrics attract venture capital investments, incentivize local entrepreneurship, and bolster workforce retention in high-skilled technical sectors. Furthermore, consistent top-tier ratings elevate North Dakota’s national stature as a competitive hub for emerging technologies, fostering an environment where commercial ventures can scale efficiently.

Conversely, sustained lower scores present tangible risks to long-term economic momentum and institutional funding. Ratings dipping into the C or D categories often reflect broader contraction in capital deployment, declining research pipeline throughput, or regulatory and logistical delays in product commercialization. A protracted period of low scores can deter institutional investors, leading to reduced grant funding and potential talent migration toward higher-performing regions. To counter these downswings, economic planners must address underlying friction points, streamline development pathways, and reinforce public-private partnerships to return the index to its historical growth trajectory.

Discussion:

In September, 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 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 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.