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).

Oregon inventionINDEX Scores – Last 12 months

The Oregon inventionINDEX Score for February 2026 stands at 1.69 percent, which translates to a B- rating. This reflects a modest rebound from the 1.17 percent and C rating recorded in January 2026, marking an end to the downward trajectory seen at the turn of the year. Throughout the final months of 2025, the index experienced a cooling period with scores of 1.33 percent and 1.39 percent in December and November respectively. Although the current B- rating shows positive movement, the score remains below the five-year average of roughly 2.02 percent, indicating that the regional innovation climate is currently in a phase of steady recovery rather than peak performance.

A review of the sixty-month historical table underscores the index’s capacity for high volatility and significant growth. The most prominent achievement occurred in October 2023, when the index spiked to a record 7.06 percent, earning an A+ rating. This standout performance was surrounded by other strong months, such as August 2023 at 3.11 percent and January 2024 at 2.93 percent. However, the data also highlights periods of severe contraction, most notably in January 2023 when the score dipped to -0.55 percent, the only F rating in the five-year history. Comparing the current 1.69 percent score to these extremes shows that Oregon has moved away from its historical lows, though it has yet to reclaim the high-velocity growth seen during the 2023 and 2024 expansion.

The benefits of maintaining a higher grade on the inventionINDEX are substantial for the state’s economic health. High scores, typically those in the A and B ranges, indicate a thriving ecosystem where research and development are translating efficiently into economic value. Such ratings often serve as a signal to global investors that the region is a productive and stable place for capital allocation. Furthermore, higher grades suggest a high level of collaborative success between academic institutions and private industry, fostering a workforce that is both skilled and forward-thinking. By sustaining these levels, the state ensures a steady pipeline of new products and services, which ultimately drives job creation and increases overall prosperity.

On the other hand, the negative implications of lower scores like the C and C+ ratings observed in late 2025 and early 2026 cannot be overlooked. Lower scores often reflect a slowing of innovation momentum, which can lead to reduced competitiveness on a national or international scale. These dips suggest potential obstacles in the business environment, such as reduced funding for startups or a decline in new patent applications. If a score reaches the F level, as it did in early 2023, it indicates a period of significant risk where the output of new inventions is not meeting the needs of the market. Monitoring these lower ratings is crucial for identifying when policy adjustments or additional support for the technology and science sectors may be necessary to prevent long-term stagnation.

Discussion:

In February, the Oregon 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 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 Oregon office provides R&D tax credit consulting and advisory services to Portland, Eugene, Salem, Gresham, Hillsboro, Beaverton, Bend, Medford, Springfield, and Corvallis.

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.