MONTANA INVENTIONINDEX | DECEMBER 2025
December 2025: 5.22% (A+ grade)
Montana inventionINDEX December 2025: 5.22% (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
| Month | inventionINDEX Score |
| December 2025 | 5.22% |
| Nov 25 | 2.95% |
| Oct 25 | 2.49% |
| Sep 25 | 3.18% |
| Aug 25 | 4.54% |
| Jul 25 | 2.72% |
| Jun 25 | 2.27% |
| May 25 | 8.17% |
| Apr 25 | 4.31% |
| Mar 25 | 6.13% |
| Feb 25 | 8.85% |
| Jan 25 | 5.90% |
| Dec 24 | 5.22% |
The Montana inventionINDEX score for December 2025 stands at 5.22%, reflecting a stable and healthy performance when viewed against the historical data of the last five years. This figure sits slightly above the 60-month average of 4.77%, demonstrating a resilient recovery from the more volatile periods observed in early 2021. For instance, the index reached a significant historical peak of 11.13% in November 2022 but also saw a concerning dip to its lowest point of 0.68% in July 2021. The current score suggests that while the state is not currently at its record high, it has established a solid baseline that consistently outperforms the lows of previous cycles.
Achieving and maintaining a high score, particularly the recurring A+ rating seen throughout the majority of the last three years, brings several positive outcomes to the regional economy. A high inventionINDEX indicates a flourishing ecosystem where intellectual property and creative problem-solving are prioritized. This environment serves as a magnet for venture capital and specialized talent, as investors are more likely to commit resources to regions with a proven track record of innovation. Furthermore, a sustained top-tier rating boosts local morale and reinforces the state’s reputation as a hub for technological and industrial advancement, ultimately leading to higher-quality job creation and increased economic resilience.
Conversely, lower scores and diminished ratings present serious negative implications for the state’s long-term growth. The periods in 2021 where the index dropped to ratings of C+ or D serve as a reminder of the potential for stagnation within the innovation pipeline. A low score often suggests a lack of new patent activity, reduced research and development funding, or a general decline in the support structures for creative industries. Such trends can trigger a brain drain, as skilled professionals may seek more dynamic environments elsewhere. Additionally, a declining score can deter future investment, making it increasingly difficult to reverse a downward economic trend once it gains momentum.
The trajectory of the Montana inventionINDEX over the past 60 months highlights the importance of steady growth over sporadic peaks. While the fluctuation in monthly scores is natural, the ability to remain within the A+ range throughout most of 2024 and 2025 is an encouraging sign of maturity in the state’s invention landscape. By focusing on the factors that drive these scores higher, such as supporting local entrepreneurs and fostering academic partnerships, the region can ensure it remains competitive on a national scale. Protecting this high rating is essential for securing a prosperous and innovative future for all stakeholders involved.
Discussion:
In December, the Montana inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar 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 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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
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Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
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