May 2026: 2.09% (B grade)

Ohio inventionINDEX May 2026: 2.09% (B 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).

Ohio inventionINDEX Scores – Last 12 months

The Ohio inventionINDEX registered a score of 2.09% with a B rating in May 2026. This represents a strong short-term recovery from the 1.12% score and C rating recorded in April 2026, though it still falls slightly short of the long-term 60-month average of approximately 2.30%. The performance in early 2026 has been characterized by intense month-to-month volatility, as evidenced by March’s impressive 3.99% (A+) preceding April’s sharp contraction. By pulling back above the 2.00% threshold, the latest reading demonstrates a resilient return to the index’s median operational range, balancing out recent downward pressures and stabilizing the state’s short-term innovation trajectory.

A broader analysis of the index over the past five years highlights a cyclical pattern defined by dramatic swings rather than steady linear progression. The state hit its highest milestone in January 2024, when the index peaked at an exceptional 4.56% with an A+ rating, reflecting a highly concentrated boom in innovation activity. Conversely, the historical baseline reached its lowest point in December 2022, bottoming out at 0.64% with a D+ rating. The frequent transitions between high A-tier scores and brief drops below 1.00% underscore a highly dynamic regional environment that reacts quickly to broader macroeconomic shifts and changes in research development funding.

Achieving higher index scores and premium grades, such as the recurring A+ marks seen in mid-2024 and early 2026, yields substantial benefits for Ohio’s economic infrastructure. High ratings reflect elevated levels of patent disclosures, robust capital allocations for corporate research, and productive academic-industrial partnerships. This active environment enhances investor confidence, making the state more attractive for venture capital inflows and large-scale industrial relocations. Ultimately, a thriving innovation index creates a compounding effect that accelerates job creation, retains specialized engineering and scientific talent, and cements Ohio’s position as a prominent manufacturing and technology hub.

In contrast, periods characterized by lower scores and depressed ratings carry clear negative consequences for the state’s competitive standing. When the index contracts to tiers like the C- or D ranges, as seen in late 2022 and late 2024, it highlights underlying friction such as capital constraints, regulatory backlogs, or diminished research output. A prolonged depression in the score risks chilling investor interest, causing funding bottlenecks for early-stage tech ventures. Furthermore, an extended lull can trigger a migration of skilled technical and entrepreneurial talent to more aggressive regional economies, slowing down long-term technological integration and reducing the state’s overall productivity growth.

Discussion:

In May, the Ohio 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 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.