WISCONSIN INVENTIONINDEX | JANUARY 2026

January 2026: 1.48% (A grade)

Wisconsin inventionINDEX January 2026: 1.48% (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).

Wisconsin inventionINDEX Scores – Last 12 months

The January 2026 Wisconsin inventionINDEX score of 1.48% positions the state in a stable, albeit moderated, territory compared to the volatility observed over the last five years. While this current rating of A is commendable, it represents a slight decline from the robust A+ performance of 1.91% seen in December 2025. Over the sixty-month horizon, the index has navigated a wide spectrum of results, ranging from the exceptional peak of 3.69% in May 2023 to the concerning troughs of June 2023 and July 2022 where scores dipped into negative territory. This historical context reveals a resilient innovation landscape that frequently rebounds from brief downturns to maintain a generally positive trajectory.

Examining the trends from 2021 through 2025 illustrates a pattern of cyclical momentum. The early 2021 period began with more conservative scores, such as the 0.98% recorded in January 2021, before gaining significant strength throughout 2023 and 2024. The current score of 1.48% sits comfortably above the five-year lows and aligns closely with the long-term historical median. It is noteworthy that the index has successfully avoided the negative territory seen in previous years, suggesting that the structural foundations of invention and development within the region have become more robust against external pressures than they were during the fluctuations seen in 2022.

Maintaining a grade of A or A+ yields substantial benefits for the economic and creative ecosystem. High scores signify an environment where intellectual property development, research initiatives, and entrepreneurial ventures are flourishing. These top-tier ratings typically correlate with increased investor confidence, higher rates of patent filings, and a more competitive standing on the national stage. When the index reaches levels like the 2.59% seen in January 2024, it indicates a high density of high-value innovation activity that attracts talent and capital, fostering a self-sustaining cycle of regional growth and technological advancement.

Conversely, a decline in the score toward B or C ratings, or the rare dip into F territory, presents significant challenges. Lower grades often reflect a stagnation in creative output or a lack of necessary resources to bring new ideas to fruition. Such downturns can lead to reduced funding opportunities and a slower pace of industrial evolution, potentially causing the state to lag behind more aggressive competitors. Fortunately, the current standing of 1.48% avoids these pitfalls, maintaining a healthy distance from the historical floor. Moving forward, the focus remains on sustaining this A-level performance to ensure continued leadership in the invention sector.

Discussion:

In January, the Wisconsin 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 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.