Virginia inventionINDEX September 2026: 2.10% (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 score for September 2026 reached 2.10% with an A+ rating, marking a strong upward movement from 1.84% in August 2026 and 1.83% in July 2026. This latest result stands comfortably above the five-year historical average of approximately 1.81%, reflecting a robust period of inventive activity across the region. Over the 60-month historical span from September 2021 through September 2026, scores have ranged from a low of 1.29% with a B rating in December 2021 to a peak of 2.18% with an A+ rating in October 2023. The recent 2.10% figure places current performance near the upper threshold of historical achievement, highlighting sustained vitality in Virginia’s innovation ecosystem.

A broader longitudinal view reveals a clear transition from moderate metrics in late 2021 and early 2022 to consistently elevated performance in subsequent years. During late 2021 and early 2022, scores frequently hovered in the 1.40% to 1.60% range, resulting in several A, A-, and B ratings. However, from mid-2022 onward, the state demonstrated remarkable consistency, maintaining A+ ratings in nearly every month and rarely dipping below 1.60%. This multi-year trajectory illustrates an expanding capacity for technological generation and commercial research, solidifying Virginia’s standing as a reliable hub for high-level inventive output.

Achieving higher index scores and top-tier A+ ratings yields significant economic and strategic benefits for the state. Elevated scores signal vibrant research and development, efficient patent generation, and strong commercialization pipelines that attract major venture capital investments. A consistently high rating enhances regional reputation, encouraging tech enterprises, research institutions, and top-tier talent to relocate or expand operations within Virginia. Furthermore, strong scores foster public-private partnerships, accelerate job creation in high-wage industries, and reinforce overall economic resilience.

Conversely, lower index scores and reduced letter grades carry notable negative implications for long-term regional growth. Periods of depressed scores, such as the 1.29% recorded in December 2021, point to potential stagnation in intellectual property production or reduced research funding. Prolonged drops in the index can erode investor confidence, divert capital toward competing technology corridors, and signal bottlenecks in institutional innovation. Additionally, lower ratings may reflect broader economic headwinds, talent retention challenges, or diminished support for early-stage commercial ventures.

Discussion:

In September, 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 in contrast to the prior 12 months, which experienced an upward 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:

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