MONTANA INVENTIONINDEX | NOVEMBER 2025

November 2025: 2.95% (A+ grade)

Montana inventionINDEX November 2025: 2.95% (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 current performance of the Montana inventionINDEX provides a nuanced perspective on the state’s inventive landscape. In November 2025, the index recorded a score of 2.95%, maintaining an A+ rating. While this figure represents a slight increase from the 2.49% observed in October 2025, it remains significantly lower than the high-water marks seen earlier in the year, such as the 8.85% peak in February 2025. When viewed against the full sixty-month historical backdrop, the current score sits well below the five-year high of 11.13% recorded in November 2022. However, the consistent A+ rating over the last several years suggests a level of structural stability in Montana’s innovation sectors that was absent during the more volatile periods of 2021.

A higher inventionINDEX score indicates a robust environment for intellectual property development and commercialization. When the score climbs toward the levels seen in May 2025 (8.17%) or July 2024 (8.40%), it typically reflects an acceleration in patent filings, increased research and development investment, and a flourishing ecosystem for entrepreneurs. These higher grades correlate with enhanced economic competitiveness, as a surge in the index suggests that Montana is successfully translating academic and private research into tangible assets. Such performance attracts venture capital and high-tech manufacturing, fostering a virtuous cycle of growth and talent retention within the state.

Conversely, a lower score or a downgraded rating presents significant challenges for the regional economy. The historical data highlights a critical period in July 2021 when the index plummeted to 0.68%, resulting in a rating of D. Such low scores often signal a stagnation in creative output or a breakdown in the pipeline from ideation to industrial application. When the index falters, it may indicate that regulatory hurdles, lack of funding, or a decrease in collaborative efforts are stifling the state’s inventive potential. Persistent low scores can lead to a “brain drain” effect, where skilled innovators seek more supportive environments elsewhere, ultimately weakening the state’s long-term economic resilience.

Looking toward the future, the stability of the A+ rating throughout 2024 and 2025 serves as a positive indicator of the index’s underlying health, even as the numerical scores fluctuate. The transition from the inconsistent ratings of early 2021—which saw grades as low as C+ and D—to the sustained excellence of the current period demonstrates a maturing innovation economy. While the November 2025 score of 2.95% is modest compared to the double-digit peaks of the past, the absence of downward rating shifts suggests that Montana has established a reliable baseline for inventive activity. Maintaining this momentum will require continued focus on the factors that drive these scores, ensuring the state remains a viable hub for future breakthroughs.

Discussion:

In November, 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 similar to the prior 12 months, which experienced a 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 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.