February 2026: 0.59% (D grade)

Rhode Island inventionINDEX February 2026: 0.59% (D 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).

Rhode Island inventionINDEX Scores – Last 12 months

The February 2026 inventionINDEX score of 0.59 percent represents a significant departure from the historical performance observed over the last five years. At a rating of D, this current figure marks the lowest point in the recorded sixty-month period, falling even below the previous lows seen in early 2022. Historically, the index has demonstrated the capacity for much higher levels of activity, with the score frequently climbing above the 2.00 percent threshold. This recent downturn suggests a sharp deviation from the established baseline, contrasting heavily with the more resilient performance levels maintained throughout much of 2023 and 2024.

When comparing the most recent data to the preceding months, the decline appears particularly abrupt. As recently as October 2025, the index reached a robust 2.93 percent with an A plus rating, reflecting a period of high productivity. The slide from 2.10 percent in December 2025 to the current 0.59 percent indicates a loss of momentum that stands in stark contrast to historical peaks like the 3.77 percent recorded in September 2023 and June 2021. While the index has experienced volatility in the past, the current trajectory is notable for its speed and the depth of the rating drop from a B minus in January to a D in February.

Achieving a higher grade, such as the A or A plus ratings seen throughout much of 2025, carries substantial positive outcomes for the regional economy. High scores typically signal a thriving ecosystem characterized by increased patent filings, heightened venture capital interest, and a strong pipeline of new technologies. These periods of peak performance suggest that Rhode Island is effectively leveraging its intellectual assets and providing a supportive environment for entrepreneurs. A high inventionINDEX score serves as a vital indicator of economic health, suggesting that the state is positioned as a leader in innovation and is likely to attract high-value industries and specialized talent.

Conversely, the move toward a lower score and a D rating presents several negative implications for the state’s strategic goals. A lower index score often reflects a stagnation in creative output or a reduction in the resources available for research and development. This can lead to decreased investor confidence and a potential migration of talent to more active innovation hubs. If this downward trend persists, it could signal a systemic challenge in the local innovation economy that may require policy adjustments or renewed private sector investment. Restoring the index to its historical average will be essential for maintaining a competitive edge and ensuring long-term economic resilience.

Discussion:

In February, the Rhode Island inventionINDEX scored a negative 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 Rhode Island office provides R&D tax credit consulting and advisory services to Providence, Warwick, Cranston, Pawtucket, and East Providence.

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.