June 2026: 1.98% (A+ grade)

Virginia inventionINDEX June 2026: 1.98% (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 Virginia inventionINDEX score for the past 12 months is shown in the table below.

The Virginia inventionINDEX for June 2026 stands at a strong 1.98% with an A+ rating, reflecting a highly favorable position when compared against the comprehensive 61-month historical dataset. This recent figure sits comfortably above the long-term historical average of approximately 1.80%, indicating robust momentum and steady growth as the data reaches its most recent milestone. Looking back over the last five years, the index has demonstrated remarkable resilience, transitioning from its historical lowest point of 1.29% in December 2021 to maintaining a sustained period of high-level performance where the A+ rating has become the definitive benchmark.

A closer examination of the historical trends highlights significant milestones and steady stabilization over the 61-month span. The inventionINDEX achieved its highest peak in October 2023 at 2.18%, demonstrating the upper bound of innovation and efficiency metrics within this dataset. Out of the 61 months recorded, an impressive 49 months achieved an A+ rating, showing that top-tier performance is an established pattern rather than a temporary anomaly. This trend shows a clear upward trajectory from the lower scores observed in late 2021 and throughout 2022, during which ratings occasionally dipped to A- or, in the case of December 2021, a B grade, illustrating successful long-term progress.

Maintaining an elevated score and securing an A+ rating yields substantial benefits for the regional innovation ecosystem. A higher inventionINDEX score signifies heightened productivity, strong investment readiness, and an environment that is highly conducive to technological breakthroughs and commercial success. These elevated scores often correlate with increased investor confidence, greater funding opportunities, and the attraction of top-tier talent to regional projects. Furthermore, a consistently high ranking enhances institutional reputation, facilitating stronger collaborative partnerships and establishing a benchmark of excellence that drives continuous development.

Conversely, a drop in the inventionINDEX score or a downward shift in the letter grade carries notable negative implications. As seen in the historical dips, such as the 1.29% score in December 2021, lower numbers indicate potential bottlenecks in the innovation pipeline, reduced operational efficiency, or market stagnation. A declining score can lead to a contraction in venture capital interest, as investors may perceive greater risk or lower returns within the ecosystem. Additionally, a lower grade might reveal systemic challenges that require immediate resource reallocation, potentially causing delays in project timelines and a loss of competitive advantage relative to other regions.

Discussion:

In June, the Virginia 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 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.

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