Vermont inventionINDEX August 2026: 1.60% (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 Vermont inventionINDEX Scores

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

A detailed review of the 60-month historical trajectory reveals notable shifts in the Vermont inventionINDEX score, moving from historical highs through stabilization to a recent resurgence. Between early 2023 and early 2024, the index maintained consistently strong marks, reaching a peak of 3.00% in February 2023 and frequently exceeding 2.00% throughout that period. In contrast, late 2025 and early 2026 experienced a period of moderation, hovering near the 1.00% to 1.27% range with ratings dipping into C- territory. However, August 2026 demonstrates a strong rebound to 1.60% with an A+ rating, matching high marks seen in May 2025 and signaling renewed momentum compared to the lower performances of preceding months.

Comparing the August 2026 performance against multi-year benchmarks highlights resilience following periodic market volatility. The historical dataset illustrates distinct economic cycles, such as the anomalous low of 0.60% with an F rating in September 2022 and a temporary drop to 0.80% in November 2024. While the current score has not yet reclaimed the extraordinary 2.50% to 3.00% heights recorded in mid-2023, the 1.60% figure represents a significant structural improvement over the lower baselines observed in late 2021 and early 2022, where scores frequently lingered near or below 1.00%.

Achieving and maintaining higher index scores yields significant strategic advantages for the regional innovation ecosystem. A robust score, such as the A+ rating recorded in August 2026, signals strong inventive output, heightened intellectual property generation, and healthy commercialization activity. Top-tier ratings enhance stakeholder confidence, attract private venture capital, and draw top research talent to the state. Furthermore, elevated scores foster economic resilience by accelerating the rate at which novel technological solutions transition into scalable, market-ready enterprise ventures.

Conversely, sustained declines or lower grades carry material risks for long-term economic expansion. When the index drops toward C, D, or F ratings—as observed during dips like September 2022, November 2024, or July 2026—it reflects underlying bottlenecks in patent activity, reduced research funding, or broader market hesitancy. Persistent lower scores can dampen investor sentiment, slow entrepreneurial activity, and cause capital reallocation toward competing regions, underscoring the importance of targeting strategic interventions during economic lulls.

Discussion:

In August, the Vermont 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 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.

GEMINI PROMPT
inventionINDEX Score – Historical Table for the last 60 months:
SR Page Link
Month
inventionINDEX Score
inventionINDEX Rating
August 2026
1.60%
A+
July 2026
1.00%
C-
June 2026
1.13%
B-
May 2026
1.13%
B-
April 2026
1.20%
B
March 2026
1.13%
B-
February 2026
1.00%
C-
January 2026
1.27%
A-
December 2025
1.20%
B
November 2025
1.47%
A+
October 2025
1.00%
C-
September 2025
1.47%
A+
August 2025
1.47%
A+
July 2025
1.47%
A+
June 2025
1.33%
A
May 2025
1.60%
A+
April 2025
1.13%
B-
March 2025
1.53%
A+
February 2025
1.73%
A+
January 2025
2.00%
A+
December 2024
1.80%
A+
November 2024
0.80%
D-
October 2024
1.67%
A+
September 2024
1.60%
A+
August 2024
1.53%
A+
July 2024
1.67%
A+
June 2024
1.60%
A+
May 2024
1.87%
A+
April 2024
1.93%
A+
March 2024
1.47%
A+
February 2024
1.40%
A+
January 2024
1.93%
A+
December 2023
2.33%
A+
November 2023
2.20%
A+
October 2023
2.60%
A+
September 2023
2.60%
A+
August 2023
2.47%
A+
July 2023
2.07%
A+
June 2023
2.47%
A+
May 2023
1.80%
A+
April 2023
2.13%
A+
March 2023
1.27%
A-
February 2023
3.00%
A+
January 2023
1.60%
A+
December 2022
1.33%
A
November 2022
1.53%
A+
October 2022
1.53%
A+
September 2022
0.60%
F
August 2022
1.87%
A+
July 2022
1.60%
A+
June 2022
1.53%
A+
May 2022
1.20%
B
April 2022
1.00%
C-
March 2022
1.40%
A+
February 2022
0.93%
D+
January 2022
1.20%
B
December 2021
1.27%
A-
November 2021
1.00%
C-
October 2021
0.93%
D+
September 2021
0.80%
D-
August 2021
1.13%
B-