April 2026: 1.20% (B grade)

Vermont inventionINDEX April 2026: 1.20% (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).

Vermont inventionINDEX Scores – Last 12 months

The April 2026 inventionINDEX for Vermont stands at 1.20 percent, securing a B rating. This represents a steady climb from the earlier part of the year, recovering from a notable dip in February 2026 where the score reached a low of 1.00 percent with a C- rating. When compared to the same month in the previous year, April 2025, which recorded a 1.13 percent score, the state is showing a modest year-over-year improvement. While it has not yet reclaimed the A- territory seen in January 2026, the current trajectory suggests a stabilization of Vermont’s innovation pipeline after a somewhat volatile first quarter.

Viewing this data within the wider sixty-month window reveals that Vermont is currently in a period of consolidation following several years of extreme fluctuation. The state reached a historic peak in February 2023 with a score of 3.00 percent, an exceptional A+ performance that set a high bar for the region. Since that era of high output, which stretched through much of 2023 and early 2024, the index has largely retreated from those record heights. However, the current 1.20 percent remains vastly superior to the historical low of 0.60 percent recorded in September 2022, indicating that while the pace of breakthroughs has slowed, the state has successfully avoided the critical troughs seen in previous cycles.

A higher grade on the inventionINDEX, such as the A+ ratings achieved during the state’s peak performance years, yields significant dividends for the local economy. These scores serve as a primary indicator of a vibrant intellectual property environment, characterized by high patent density and aggressive technological development. When the index reaches these levels, it often acts as a catalyst for increased venture capital interest and the expansion of high-growth tech firms. A prestigious rating suggests to stakeholders that Vermont is a competitive landscape for researchers and entrepreneurs, which helps to foster a virtuous cycle of job creation and industrial modernization.

Conversely, a decline in the inventionINDEX score toward the D or F ranges carries serious negative implications for the state’s competitive standing. Lower scores typically reflect a lack of diversity in the innovation portfolio or a decrease in the commercialization of new technologies. If the index remains low for an extended period, the state risks a loss of intellectual capital as top-tier talent and startup founders migrate to more innovative hubs. Such stagnation can lead to reduced public and private investment in research infrastructure, making it increasingly difficult to jumpstart economic growth in the face of shifting global market demands.

Discussion:

In April, the Vermont 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 Vermont office provides R&D tax credit consulting and advisory services to Burlington, South Burlington, Rutland, Barre, and Montpelier.

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.