April 2026: 1.11% (B- grade)
Texas inventionINDEX April 2026: 1.11% (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).
Texas inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 1.11% |
| Mar 26 | 1.25% |
| Feb 26 | 1.15% |
| Jan 26 | 1.13% |
| Dec 25 | 1.20% |
| Nov 25 | 1.17% |
| Oct 25 | 1.15% |
| Sep 25 | 1.23% |
| Aug 25 | 1.13% |
| Jul 25 | 1.27% |
| Jun 25 | 1.14% |
| May 25 | 1.18% |
| Apr 25 | 1.22% |
The Texas inventionINDEX score for April 2026 reached 1.11 percent, resulting in a B- rating. This figure represents a notable decline from the 1.25 percent recorded in March, which had earned an A rating. When looking at the performance throughout the early part of 2026, the index has shown significant volatility, moving from a stable start in January and February at 1.13 percent and 1.15 percent respectively, before the March peak and subsequent April dip. This current score is one of the lower marks seen in the last year, suggesting a period of transition or cooling in the state’s innovation output following a stronger performance in late 2025.
Examining the broader sixty-month historical context, the current score of 1.11 percent sits comfortably above the five-year low of 1.04 percent recorded in October 2021. However, it remains well below the historical peaks seen in late 2022 and mid-2023, where the index frequently crossed the 1.40 percent threshold. Specifically, the August 2023 peak of 1.48 percent stands as a benchmark for the state’s potential. The current data indicates that while the Texas innovation landscape is far more resilient than it was during the 2021 troughs, it has yet to reclaim the momentum that defined its most productive periods over the last five years.
A higher grade on the inventionINDEX, such as the A+ ratings achieved in late 2023 and 2024, carries substantial positive outcomes for the regional economy. High scores typically correlate with an increase in patent applications, a surge in venture capital investment, and the expansion of high-tech manufacturing sectors. When the index resides in the A range, it signals to global investors and corporations that the state possesses a fertile environment for research and development. This prestige helps attract top-tier talent and fosters a culture of entrepreneurship that creates high-paying jobs and sustains long-term economic growth.
Conversely, a lower score or a downward trend into the B and C categories can have negative implications for the state’s competitive edge. A declining index often reflects a slowdown in the commercialization of new technologies or a reduction in private sector R&D spending. If these lower scores persist, there is a risk of losing innovative talent to other states with more robust growth indicators, potentially leading to a stagnation in industrial modernization. Maintaining a high index score is therefore critical for ensuring that the state remains a leader in the global knowledge economy rather than falling behind more aggressive regional competitors.
Discussion:
In April, the Texas inventionINDEX scored a positive 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 Texas office provides R&D tax credit consulting and advisory services to Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Grand Prairie, Brownsville, McKinney, Frisco, Pasadena and Mesquite.
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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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