June 2026: 1.36% (B- grade)

Washington inventionINDEX June 2026: 1.36% (B- 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 Washington inventionINDEX score for the past 12 months is shown in the table below.

The Washington inventionINDEX reached a score of 1.36% in June 2026, securing a stable B- rating. This score represents a notable recovery from the immediate preceding months of April and May 2026, which posted lower scores of 1.08% and 1.18% respectively. Looking at the broader trajectory of the last 60 months, the June 2026 figure sits precisely at the historical median of 1.36%, indicating that the current state of innovation has returned to a reliable baseline. It remains just slightly below the 60-month historical average of approximately 1.39%, suggesting that while the index is not operating at maximum capacity, it has successfully broken away from the downward trends observed during the earlier part of the year.

Examining the historical data over the five-year horizon reveals a cyclical pattern with distinct peaks and valleys. The highest level of performance was recorded in April 2022, when the index reached a peak of 2.28% with an A+ rating, followed by other strong periods such as November 2022 at 1.89% and March 2024 at 1.81%. In contrast, the lowest point in the historical table occurred in April 2025, when the index plummeted to 0.96%, yielding a C- rating. By comparing the current score of 1.36% to these historical extremes, it is clear that the index has successfully rebounded from its deepest historical troughs but still has significant room to grow before matching its past heights.

High grades and elevated scores within this index yield numerous positive outcomes for the regional innovation ecosystem. When the score rises into the A and B ranges, it indicates robust intellectual property activity, increased commercialization of new technologies, and a vibrant entrepreneurial climate. These higher ratings serve as a strong signal to the market, helping to attract venture capital, secure corporate investments, and draw top-tier scientific and engineering talent. Ultimately, a strong performance fosters long-term economic resilience and establishes the region as a leader in technological progress.

Conversely, lower scores and declining grades carry negative implications that can hamper long-term growth. When the index dips into the C range or below, it often reflects a stagnation in research and development output, decreased patent applications, or a bottleneck in moving ideas from the lab to the market. This downward momentum can erode investor confidence, lead to a reduction in venture funding, and cause the region to lose its competitive edge against rival innovation hubs. Persistently low scores emphasize the need for strategic interventions, increased institutional support, and targeted investments to revitalize the creative pipeline.

Discussion:

In June, the Washington 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 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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