May 2026: 1.90% (A+ grade)

Wisconsin inventionINDEX May 2026: 1.90% (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).

Historical Wisconsin inventionINDEX Scores

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

The most recent data from May 2026 shows the Wisconsin inventionINDEX reaching a score of 1.90%, earning an A+ rating. This marks a solid recovery from the previous month’s dip to 1.38% and sits comfortably above the 60-month historical average of 1.64%. When comparing this latest achievement to the broader dataset spanning back to May 2021, it is clear that the index has experienced significant variability. While the current score is strong, it remains below the historical peak of 3.69% recorded in May 2023, illustrating that while performance is robust, there is still room for upward momentum.

Examining the trajectory over the last five years reveals a general stabilization in recent quarters. The index has largely maintained a continuous streak of A-level ratings since late 2024, indicating a sustained period of healthy innovation metrics. This is a stark contrast to earlier periods of volatility, most notably the negative scores and subsequent F ratings observed in July 2022 and June 2023. Overcoming those historical lows demonstrates resilience and a successful recalibration of the factors driving the index, establishing a much more reliable foundation for current and future assessments.

A consistently high grade on the inventionINDEX carries numerous positive outcomes for the broader Wisconsin ecosystem. Securing an A+ rating signals to external stakeholders that the region is cultivating a highly dynamic and forward-thinking environment. This elevated status often acts as a catalyst for economic growth, making it significantly easier to attract venture capital, secure research grants, and draw top-tier talent. Furthermore, high scores can boost internal morale among local innovators and institutions, fostering a collaborative atmosphere where further breakthroughs are encouraged and adequately supported.

Conversely, there are tangible negative implications when the score falters or trends downward over consecutive months. A lower grade can serve as a warning sign of systemic stagnation or a loss of competitive edge in the innovation sector. Prolonged periods of low scores, such as the C and F ratings seen in the past, risk deterring potential investors who rely on these metrics to gauge regional vitality. Additionally, a downward trend may prompt an exodus of skilled professionals seeking more thriving environments, ultimately compounding the decline and making future recoveries much more challenging.

Discussion:

In May, the Wisconsin 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 Wisconsin office provides R&D tax credit consulting and advisory services to Milwaukee, Madison, Green Bay, Kenosha, Racine, Appleton, Waukesha, Eau Claire, Oshkosh and Janesville

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.