May 2026: 1.82% (A+ grade)

Virginia inventionINDEX May 2026: 1.82% (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 Virginia inventionINDEX Scores

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

The Virginia inventionINDEX score for May 2026 stands at 1.82 percent, securing a top-tier A+ rating and demonstrating a resilient foundation for regional innovation. When compared immediately to the preceding month of April 2026, which posted a score of 1.76 percent, the index shows a minor but positive upward trajectory of 0.06 percentage points. While this current metric represents a slight pullback from the more robust 2.17 percent observed in March 2026, it aligns comfortably with the broader multi-year baseline, proving that creative output and market readiness remain highly stable.

Examining the macro-trends across the full 60-month historical spectrum reveals that the index has experienced considerable maturation over the years. In the earlier segments of the timeline, specifically December 2021, the index hit a historical low of 1.29 percent with a B rating, indicating significant systemic friction at that time. Since then, the index has steadily climbed and stabilized, reaching a peak of 2.18 percent in October 2023. The fact that the index has maintained an uninterrupted string of A+ ratings for over two years highlights a sustained period of high performance that far outclasses the volatility seen in 2021 and 2022.

Achieving and maintaining a higher grade, such as the consistent A+ rating observed throughout 2025 and 2026, yields substantial economic and structural advantages. An elevated score signals a highly efficient pipeline for intellectual property development, which builds robust investor confidence and attracts venture capital to local technology sectors. Furthermore, these high marks imply that research institutions, corporate laboratories, and independent inventors are operating in synchrony, accelerating commercialization timelines and fostering a premier reputation for regional ingenuity.

Conversely, a lower index score carries notable negative implications that can hamper long-term growth. When the metrics degrade toward historical levels like the A- or B ratings witnessed in late 2021, it often points to systemic bottlenecks, such as reduced development funding, bureaucratic delays in patent processing, or a lack of collaborative infrastructure. A prolonged downward shift can lead to capital flight, as investors seek more dynamic ecosystems, ultimately resulting in a stagnant creative economy and a loss of competitive advantage.

Discussion:

In May, the Virginia inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 Virginia office provides R&D tax credit consulting and advisory services to Virginia Beach, Norfolk, Chesapeake, Richmond, Newport News, Alexandria, Hampton, Roanoke, Portsmouth and Suffolk

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.