May 2026: 1.05% (C grade)

Oklahoma inventionINDEX May 2026: 1.05% (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).

Oklahoma inventionINDEX Scores – Last 12 months

The Oklahoma inventionINDEX recorded a score of 1.05% with a C rating in May 2026, signaling a clear deceleration in comparison to the index’s performance earlier in the year. This current mark represents a notable step down from the 1.94% (B) registered in April 2026 and a sharper drop from the 2.82% (A+) achieved in March 2026. When benchmarked against the comprehensive 60-month baseline, May’s score sits well below the historical five-year average of approximately 1.75%. This positioning reveals that while Oklahoma’s innovation metrics remain functional within a mid-tier bracket, the regional ecosystem is experiencing a cooling period after entering the year with stronger operational momentum.

A retrospective view of the historical timeline highlights a highly dynamic and volatile path for Oklahoma over the last five years. The state experienced its most prosperous innovation cycle during 2025, achieving an annual peak average of 2.32% and reaching its absolute historical ceiling of 4.29% twice, first in July and again in October of that year. However, this period of rapid expansion stood in stark contrast to extreme localized contractions, most notably a historical baseline low of -2.33% (F) in June 2025. Other significant dips occurred earlier in the timeline, including scores of -0.57% in January 2022 and 0.02% in late 2021. This history underscores a pattern of sharp, cyclical swings, demonstrating that Oklahoma’s innovation environment can pivot rapidly from high-performing expansion to sudden structural corrections.

Achieving higher index scores and premium grades, such as the A and A+ ratings that characterized much of mid-to-late 2025, yields profound positive outcomes for the regional economy. High ratings demonstrate a thriving innovation framework where patent filings, technological breakthroughs, and academic research move seamlessly into commercial application. For Oklahoma, these elevated tiers enhance investor confidence, acting as a primary driver for venture capital influxes and corporate relocations. This vibrant ecosystem encourages collaborative growth between traditional sectors like aerospace or energy and emerging technology industries, resulting in high-wage job creation and the robust retention of specialized local talent.

Conversely, lower index scores and depressed grades carry concerning negative implications for the state’s competitive position. When the index contracts toward the C, D, or historical F thresholds, it signals underlying friction within the entrepreneurial pipeline, which may stem from reduced capital deployment, heightened risk aversion, or shifting economic priorities. A prolonged slump, similar to the current decline down to 1.05%, can weaken the regional startup environment, making early-stage funding more difficult to secure for new ventures. Over time, a sustained deficit in innovation activity risks triggering a talent drain to more aggressive economic markets, ultimately stalling the modernization of local industries and slowing broader economic growth.

Discussion:

In May, the Oklahoma 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 considerable 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 Oklahoma office provides R&D tax credit consulting and advisory services to Oklahoma City, Tulsa, Norman, Broken Arrow, Lawton, Edmond, Moore, Midwest City, Enid, and Stillwater.

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.