May 2026: 1.18% (C+ grade)

Washington inventionINDEX May 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).

Historical Washington inventionINDEX Scores

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

The May 2026 Washington inventionINDEX score of 1.18 percent, yielding a C+ rating, signals a modest rebound from the immediate contraction observed in April 2026, when the metric dipped to 1.08 percent and a flat C grade. While this marginal uptick offers a brief reprieve from consecutive monthly declines, a closer look at the first half of 2026 reveals a localized stabilization pattern rather than a robust breakout. The index began the year at 1.12 percent before climbing to a brief high of 1.37 percent in March, only to retreat to its current baseline, demonstrating that contemporary innovation metrics are facing structural friction that keeps performance anchored firmly within the average C-tier spectrum.

Placing the current metric against the broader sixty-month historical trajectory highlights how far the index has cooled since its historical zenith. In April 2022, the index reached an exceptional peak of 2.28 percent with an A+ rating, followed closely by a strong 1.89 percent in November of the same year. By contrast, the index has spent much of the past two years struggling to recreate those heights, hitting an absolute historical trough of 0.96 percent with a C- rating in April 2025. The current 1.18 percent represents an intermediate resting point, sitting safely above that historical floor but tracking significantly below the historical average established during the highly productive periods of 2022 and late 2023.

When the Washington inventionINDEX pushes into higher tiers, such as the coveted A and B grades seen in early 2024, it correlates with a highly vibrant macroeconomic environment for creators and entrepreneurs. A higher grade implies robust capital deployment into research and development, a higher volume of commercially viable patents, and elevated investor confidence in foundational breakthroughs. These elevated rankings serve as a catalyst for market momentum, attracting top-tier international talent and accelerating the transition of theoretical intellectual property into scalable economic realities.

Conversely, prolonged periods characterized by lower scores or lingering C-grade performance carry restrictive implications for long-term regional competitiveness. A depressed score often reflects systemic bottlenecks, such as restricted risk capital, rising regulatory hurdles, or a general pivot toward low-risk, incremental improvements rather than disruptive pioneering endeavors. Left unchecked, a sustained downtrend risks chilling market enthusiasm, potentially leading to capital flight toward more dynamic global innovation hubs and slowing down the overarching pace of technological advancement within the state.

Discussion:

In May, the Washington 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 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.

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