June 2026: 1.21% (A- grade)

Texas inventionINDEX June 2026: 1.21% (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).

Historical Texas inventionINDEX Scores

The Texas inventionINDEX score for the past 12 months is shown in the table below.

The recent performance of the Texas inventionINDEX in June 2026 demonstrates a solid recovery, reaching a score of 1.21% with an A- rating. This marks a notable improvement over the preceding months of April and May 2026, which posted scores of 1.11% and 1.15% respectively. When evaluating this latest data against the broader sixty-month timeline, the index exhibits a consistent pattern of cyclical fluctuation rather than steady growth or decline. The climb back to an A- rating indicates a resurgence in innovation-driven activities, positioning the current period as one of building momentum compared to the softer baseline seen in the early spring of 2026.

A deeper retrospective analysis reveals that while the June 2026 score is strong, it remains below the historical peaks achieved over the last five years. The index reached its absolute zenith in August 2023 with a score of 1.48%, closely followed by another high of 1.45% in August 2022, both yielding prestigious A+ ratings. Conversely, the current score sits comfortably above the historical troughs, most notably the lowest recorded score of 1.04% in October 2021, which resulted in a C rating. By contextualizing the current 1.21% score within these historical extremes, it becomes evident that the index is maintaining a healthy mid-to-high historical average, avoiding the severe dips of previous years while striving to recapture past peaks.

Achieving a higher grade and score on the inventionINDEX yields several vital positive outcomes for the regional economy. High marks, such as the A- received in June 2026 or the A+ ratings from prior years, signify a robust ecosystem that actively fosters research, development, and technological advancement. These elevated scores serve as strong signals to venture capitalists and corporate investors that the region possesses a fertile ground for commercial success, thereby attracting external capital and high-tier talent. Furthermore, sustained high ratings tend to correlate with increased patent applications, job creation in high-tech sectors, and an overall enhancement of competitive advantage in the global marketplace.

In contrast, the negative implications of a lower score or a declining grade present significant headwinds that require strategic attention. When the index dips into the B- or C categories, as observed during periods like April 2026 or October 2021, it suggests a contraction in innovative output or underlying systemic inefficiencies. Lower scores can indicate diminishing institutional funding, a slowdown in breakthrough discoveries, or a regulatory environment that impedes commercial progress. This downward trend risks dampening investor confidence, causing capital to migrate to more dynamic regions and potentially leading to long-term economic stagnation if left unaddressed.

Discussion:

In June, the Texas inventionINDEX scored a positive sentiment which was higher than the previous year’s average and 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 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

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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