July 2025: 1.70% (A- grade)

Utah inventionINDEX July 2025: 1.70% (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).

Utah inventionINDEX Scores – Last 12 months

The Utah inventionINDEX provides a valuable snapshot of the region’s innovation landscape over time. The most recent score, recorded in July 2025, stands at 1.70%, corresponding to a solid ‘A-‘ rating. This performance places the current score above the 60-month historical average of approximately 1.50%. While it is not the highest score on record, which was 2.89% in November 2023, the ‘A-‘ rating indicates a strong and sustained level of innovative activity compared to the overall trend. The score demonstrates a resilience in the state’s innovation ecosystem, positioning it favorably within the historical context of the past five years.

A higher inventionINDEX score and an accompanying strong rating, such as an ‘A’ or ‘A+’, signal a vibrant and productive environment for new ideas and technological advancements. These high scores, like the 2.89% achieved in November 2023 or the 1.98% from September 2020, often correlate with positive economic outcomes. Such periods can attract significant venture capital, foster the growth of new businesses, and create high-skilled employment opportunities. This upward trend in the score reflects a healthy innovation pipeline, enhancing Utah’s reputation as a hub for creativity and economic development.

Conversely, a lower inventionINDEX score, such as the 0.57% ‘D-‘ rating seen in April 2021, suggests a period of reduced innovative output. Scores in the ‘C’ or ‘D’ range may indicate potential challenges within the economy, such as a decline in research and development funding, a slowdown in startup activity, or a less favorable environment for intellectual property creation. The 0.99% ‘C-‘ score in August 2024 is another example of a dip that, if sustained, could signal a need for greater focus on supporting innovation. A series of lower scores can have negative implications, potentially making the region less attractive to new talent and investment, and could impact long-term economic growth.

In summary, the inventionINDEX serves as a key performance indicator for Utah’s innovative health. The historical data reveals a pattern of fluctuation, with both strong periods of high scores and occasional downturns. The current ‘A-‘ rating indicates that the region is performing well, exceeding its five-year average. This score reflects a positive environment that can contribute to economic strength, while the historical low points serve as a reminder of the need to continually support and nurture the factors that drive innovation.

Discussion:

In July, the Utah 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 considerable 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 Utah office provides R&D tax credit consulting and advisory services to Salt Lake City, West Valley City, Provo, West Jordan, Orem, Sandy, Ogden, St George, Layton, and Taylorsville.

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.

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