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).

Ohio inventionINDEX Scores – Last 12 months

The February 2026 inventionINDEX score for Ohio stands at 1.89 percent, earning a B-minus rating. This latest figure represents a notable recovery from the 0.93 percent recorded in January 2026, signaling a return to a more stable performance level. When viewed against the historical data of the past sixty months, the current score sits comfortably above the significant lows seen in early 2021, yet it remains below the peak performance levels achieved during the mid-2025 surge. This suggests a period of stabilization as the state continues to navigate the complexities of its innovation pipeline.

Looking back over the five-year trajectory, the Ohio inventionINDEX has experienced considerable volatility, ranging from a low of negative 3.17 percent in February 2021 to a high of 4.56 percent in January 2024. The frequency of A-grade ratings, particularly in late 2023 and early 2024, highlights the state’s potential for exceptional creative and technical output. While the recent B-minus rating is modest compared to those historical zeniths, it demonstrates a resilient baseline that has generally trended upward since the significant disruptions observed at the beginning of the reporting period.

Achieving a higher grade on the inventionINDEX brings substantial positive outcomes for the regional economy. High scores, such as the 3.83 percent reached in July 2025, typically correlate with increased patent filings, enhanced research and development activity, and a stronger influx of venture capital. These periods of high performance foster an environment where technological breakthroughs are more frequent, positioning Ohio as a leader in industrial and scientific advancement. A higher rating also serves as a powerful marketing tool for the state, attracting world-class talent and corporate headquarters seeking a fertile ground for innovation.

Conversely, a decline in the inventionINDEX score carries negative implications for long-term growth. When the score drops into the C or D range, as seen in October 2025 and January 2026, it often reflects a slowdown in the translation of ideas into tangible assets. This lack of momentum can lead to reduced investor confidence and a potential brain drain as creative professionals seek opportunities in more active markets. Persistent lower scores suggest that the innovation ecosystem may be facing structural hurdles or a lack of sufficient support, necessitating a strategic review of resource allocation to ensure the state remains competitive.

Discussion:

In February, the Ohio inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a considerable 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 Ohio office provides R&D tax credit consulting and advisory services to Columbus, Cleveland, Cincinnati, Toledo, Akron, Dayton, Parma, Canton, Youngstown, Lorain, Hamilton, Springfield, Kettering, Elyria, Lakewood, Cuyahoga Falls, Middletown, Euclid, Newark and Mansfield.

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.