April 2026: 1.53% (A+ grade)
Tennessee inventionINDEX April 2026: 1.53% (A+ 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).
Tennessee inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 1.53% |
| Mar 26 | 1.78% |
| Feb 26 | 1.51% |
| Jan 26 | 1.42% |
| Dec 25 | 1.71% |
| Nov 25 | 1.51% |
| Oct 25 | 1.54% |
| Sep 25 | 1.84% |
| Aug 25 | 1.40% |
| Jul 25 | 1.87% |
| Jun 25 | 1.44% |
| May 25 | 1.37% |
| Apr 25 | 1.51% |
The April 2026 inventionINDEX score for Tennessee stands at 1.53 percent, maintaining a prestigious A+ rating. While this reflects a slight decrease from the 1.78 percent recorded in March, it remains significantly stronger than the 1.42 percent start to the year in January. This consistency within the top-tier rating bracket suggests a robust environment for innovation that has characterized the state’s performance throughout the first quarter of the year. When compared to the same period in 2025, which saw a nearly identical score of 1.51 percent, it is evident that Tennessee has established a high-performing and stable baseline for its creative and technical output.
Looking at the broader sixty-month trajectory, the current figures represent a substantial evolution from the historical lows seen in late 2021. The index hit its lowest point of 1.07 percent in December 2021, earning a C+ rating, which stands in stark contrast to the sustained A+ performance of the current era. The data reveals a peak of 1.87 percent in July 2025, illustrating the state’s capacity for exceptional growth. This long-term trend indicates that the Tennessee innovation ecosystem has matured significantly, moving away from the volatility and lower ratings of previous years toward a more reliable and sophisticated economic position.
A high grade in the inventionINDEX, specifically the A and A+ ratings maintained over the last several months, serves as a vital indicator of economic vitality. These scores signify a fertile ground for patent filings, technological advancements, and the successful commercialization of new ideas. Such a high-performing environment attracts significant venture capital and encourages high-tech industries to relocate or expand within the state. When the index resides in these upper echelons, it signals to global stakeholders that Tennessee is a premier hub for intellectual property development, which ultimately drives high-quality job creation and broad-based prosperity.
In contrast, lower scores or a regression into the B or C categories observed in the earlier parts of the table carry negative implications for the state’s competitive standing. Lower ratings typically suggest a stagnation in research and development or a lack of sufficient institutional support for new ventures. This can lead to a loss of talent to more innovative regions, creating a cycle of reduced investment and slower economic momentum. Maintaining the current high scores is therefore essential to avoid such stagnation and to ensure that the infrastructure for future technological breakthroughs remains resilient against shifting market conditions.
Discussion:
In April, the Tennessee 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 an 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 Tennessee office provides R&D tax credit consulting and advisory services to Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, Franklin, Jackson, Johnson City, and Bartlett.
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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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