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

The latest report for March 2026 shows a Washington inventionINDEX score of 1.37%, resulting in a B rating. This performance marks a notable improvement over the opening months of the year, where scores dipped as low as 1.12% in January. While this modest upward movement suggests a stabilization in the regional innovation landscape, the current standing remains conservative when viewed against the broader 60-month dataset. The transition from a C+ to a B rating reflects a moderate resurgence in creative output compared to the lackluster performance seen throughout much of late 2025, yet it highlights a struggle to return to previous heights.

When examining the five-year trajectory, the most striking contrast appears between the current state and the peak performance recorded in April 2022, which reached a remarkable A+ rating of 2.28%. Since that high point, the index has largely shifted into a lower band, frequently oscillating between 1.1% and 1.6%. The data from 2024 through early 2026 indicates a period of cooling or consolidation, as the A-level ratings that were more common in 2021 and 2022 have become increasingly rare. This long-term trend suggests that while the state remains a productive hub, it has yet to recapture the intensive momentum that characterized its earlier, more aggressive growth phases.

Achieving higher grades, such as the A and A+ ratings seen in the historical peaks, yields significant advantages for the Washington economic environment. High scores often act as a beacon for venture capital and private equity, signaling that the region is a fertile ground for high-tech development and intellectual property commercialization. A superior rating implies that local institutions and private enterprises are successfully translating research into tangible assets, which in turn drives high-value job creation and attracts top-tier global talent. These periods of peak performance typically coincide with a more robust and resilient economy capable of leading national trends in technological advancement.

Conversely, the frequent appearance of lower scores, such as the C-rated months of April 2025 and June 2025, presents clear risks to regional standing. A lower inventionINDEX score can suggest a slowdown in the pipeline of new ideas or a lack of necessary infrastructure support for inventors and startups. These negative implications can lead to a loss of competitive advantage as other regions capitalize on local stagnation. If the score remains suppressed over a long period, it can discourage long-term investment and prompt a migration of creative talent toward more dynamic markets, ultimately weakening the state influence in the global innovation economy.

Discussion:

In March, the Washington inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 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. 

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.