February 2026: 1.18% (C+ grade)
Washington inventionINDEX February 2026: 1.18% (C+ 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).
Washington inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| February 2026 | 1.18% |
| Jan 26 | 1.12% |
| Dec 25 | 1.36% |
| Nov 25 | 1.17% |
| Oct 25 | 1.27% |
| Sep 25 | 1.38% |
| Aug 25 | 1.22% |
| Jul 25 | 1.59% |
| Jun 25 | 1.06% |
| May 25 | 1.25% |
| Apr 25 | 0.96% |
| Mar 25 | 1.19% |
| Feb 25 | 1.24% |
The current Washington inventionINDEX score for February 2026 stands at 1.18 percent, yielding a C+ rating. This reflects a modest uptick from January 2026, which recorded a score of 1.12 percent. However, when viewing the broader historical landscape, the current index remains significantly below the 60-month average of approximately 1.41 percent. While recent months have shown some stabilization after the five-year low of 0.96 percent in April 2025, the index has yet to reclaim the momentum observed in late 2023 and early 2024, when scores consistently reached the B to A range.
Analyzing the 60-month trajectory reveals significant fluctuations in patenting and innovation health. The index reached its zenith in April 2022 with a remarkable 2.28 percent score and an A+ rating. Since that peak, the trend has been characterized by a gradual decline punctuated by brief rallies, such as those seen in March 2024 and October 2023. The current score of 1.18 percent is notably lower than the February scores of the previous three years, suggesting that while the floor has been raised since the 2025 trough, the environment for new inventions is currently more restrained than in previous cycles.
Achieving a higher grade, such as the A or A+ ratings seen historically, brings several positive outcomes for the regional economy. High scores typically signal a robust ecosystem for research and development, characterized by increased patent filings and a surge in entrepreneurial activity. These periods of high innovation often attract substantial venture capital, foster high-quality job creation, and solidify the region as a leader in emerging technologies. A higher grade serves as a barometer for competitive strength, indicating that the institutional and financial support for inventors is operating at peak efficiency.
Conversely, lower scores and grades like the current C+ carry negative implications for long-term growth. Persistent ratings in the C range can indicate a stagnation in the development of new intellectual property, which may lead to a loss of competitive advantage over other global innovation hubs. Lower scores often reflect external economic pressures, reduced funding for experimental research, or a more risk-averse environment among creators. If the index remains at these levels, there is a risk that the pipeline for new products and services will tighten, ultimately resulting in slower economic expansion and a diminished ability to solve complex technical challenges through homegrown solutions.
Discussion:
In February, the Washington inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 Washington office provides R&D tax credit consulting and advisory services to Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Federal Way, and Yakima.
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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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
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