UTAH INVENTIONINDEX | JANUARY 2026

January 2026: 1.23% (C+ grade)

Utah inventionINDEX January 2026: 1.23% (C+ 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 January 2026 inventionINDEX score for Utah reached 1.23%, resulting in a C+ rating. This latest figure represents a noticeable decline from the performance observed during the final quarter of 2025, where scores peaked at 1.63% in December and remained consistently in the B range. When comparing the current standing to the previous twelve months, it is evident that the index has entered a cooling period. The July 2025 peak of 1.70% feels distant as the state enters the new year with its lowest rating since June 2025, signaling a potential slowdown in the momentum that characterized much of the previous calendar year.

A broader examination of the 60-month historical table reveals a trajectory defined by significant volatility and occasional brilliance. The January 2026 score sits well below the historical high of 2.89% recorded in November 2023, a period that stands out as a gold standard for Utah’s inventive output. However, the current 1.23% is still vastly superior to the five-year low of 0.57% seen in April 2021. Throughout this five-year span, the index has frequently oscillated between the mid-B range and the low-C range, suggesting that while the current dip is disappointing, it is not unprecedented in the context of Utah’s long-term innovative cycles.

Higher grades, such as those in the A and B categories, correlate with periods of robust economic vitality and heightened creative output within the state. When the inventionINDEX thrives, it typically reflects an environment rich with venture capital interest, high patent filing activity, and a successful synergy between academic research and commercial application. These scores serve as a beacon for talent and investment, signaling to the broader market that Utah maintains a fertile ground for technological advancement and entrepreneurial success. A higher rating bolsters confidence among stakeholders and often precedes periods of job growth and industry diversification.

Conversely, a lower score like the current C+ rating carries implications of stagnation or increased external pressures on the innovation ecosystem. Lower grades often suggest that fewer high-impact inventions are reaching the milestones necessary to move the needle, or that economic conditions are forcing a more conservative approach to research and development. This decline can lead to reduced investor confidence and a slower pace of technological adoption across local industries. If the index continues to trend downward, it may serve as a call to action for policy makers and business leaders to implement new incentives or support structures to revitalize the state’s creative engine and ensure that Utah remains competitive on a national scale.

Discussion:

In January, the Utah 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 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.