MONTANA INVENTIONINDEX | AUGUST 2025

August 2025: 4.54% (A+ grade)

Montana inventionINDEX August 2025: 4.54% (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).

Montana inventionINDEX Scores – Last 12 months

The Montana inventionINDEX for August 2025 stands at 4.54%, maintaining an A+ rating. Comparing this to the preceding 12 months, the August 2025 score is marginally lower than the August 2024 score of 4.77%. While it exhibits a slight decrease from the immediately previous year, it still demonstrates a robust performance within the A+ grading spectrum, indicating continued positive sentiment regarding innovation output in the state. Examining the broader trend of the last 60 months, the August 2025 score aligns with the generally high scores observed since late 2021, suggesting a sustained period of strong innovation activity.

A higher inventionINDEX score and a favorable grade, such as the A+ rating consistently achieved by Montana, signify a strong and healthy economic outlook driven by innovation. This indicates that the state’s growth in patent production is outpacing its GDP growth, which points to a dynamic and innovative economy. Such conditions are often linked to increased investment in research and development, the creation of new businesses, and job growth. A positive sentiment score suggests that the state is well-positioned for economic resilience and recovery, even in the face of broader economic challenges.

Conversely, a lower inventionINDEX score or a less favorable grade, particularly below a C grade, would signal a negative outlook. This scenario would imply that patent production growth is not keeping pace with GDP growth, or perhaps even declining. Such a trend could indicate a slowdown in innovation, reduced investment in new technologies, or a stagnation in the creation of intellectual property. The implications of a sustained lower score could include a weakening competitive position for the state, a slower economic recovery, and potentially fewer opportunities for new ventures and employment.

Looking at the historical data, Montana has consistently maintained an A+ rating for the majority of the past 60 months, with only a few instances dipping to C+ or D grades, primarily in 2020-2021. This consistent high performance underlines a resilient and innovative economic environment. The August 2025 score, while not the highest in the observed period, continues this positive trajectory, indicating that Montana’s innovation landscape remains strong and contributes positively to its economic fabric. Sustaining these high scores is crucial for ongoing economic dynamism and prosperity.

Discussion:

In August, the Montana inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an upward 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 Montana office provides R&D tax credit consulting and advisory services to Billings, Missoula, Great Falls, Bozeman, and Butte.

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.

Admin US