February 2026: 1.87% (A+ grade)

West Virginia inventionINDEX February 2026: 1.87% (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).

West Virginia inventionINDEX Scores – Last 12 months

The West Virginia inventionINDEX concludes its most recent sixty-month cycle on a strong note, recording a score of 1.87 percent for February 2026. This performance earns an A plus rating and represents a significant recovery from the stagnation observed throughout much of late 2025. During the final quarter of the previous year, the index frequently hovered at 1.03 percent, resulting in a series of C ratings. The sudden leap to 1.87 percent indicates a renewed surge in innovation activity within the state, positioning the region favorably as it enters the new year.

When looking at the broader historical landscape, the current score of 1.87 percent stands out as one of the peak performers of the last five years. While it does not quite reach the historical high of 2.91 percent achieved in July 2022, it matches other prominent peaks seen in July 2024 and November 2023. The data reveals a pattern of volatility, where the index has occasionally dipped to lows of 0.41 percent, as seen in May 2025 and April 2022. By maintaining a score well above the 1.03 percent baseline that characterizes much of the middle-period data, the state demonstrates a renewed capacity to break away from historical averages.

Achieving a high grade such as an A plus brings several positive outcomes for the West Virginia economic landscape. A robust inventionINDEX score suggests that the state is successfully fostering an environment where new ideas can flourish and reach commercial viability. This level of activity often attracts outside venture capital and encourages local entrepreneurs to keep their operations within the state borders. Furthermore, a consistently high rating serves as a signal to major industries that the regional workforce is engaged in high-value, forward-thinking projects, which can lead to sustainable job creation in technical and creative sectors.

Conversely, a lower score or a downward trend toward an F rating carries negative implications for the region’s competitive standing. Periods where the score dropped to 0.41 or 0.62 percent, as seen multiple times in the last 60 months, indicate a potential cooling of the innovation pipeline. Such dips suggest that barriers to research and development may be present, or that the state is struggling to retain its most creative talent. Without a steady stream of new inventions and intellectual assets, there is a significant risk of industrial stagnation, making it increasingly difficult for the state to compete with more aggressive markets in neighboring regions.

Discussion:

In February, the West Virginia inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 West Virginia office provides R&D tax credit consulting and advisory services to Charleston, Huntington, Morgantown, Parkersburg, and Wheeling.

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.