COLORADO INVENTIONINDEX | APRIL 2025
April 2025: 1.75% (A+ grade)
Colorado inventionINDEX April 2025: 1.75% (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).
Six-Month inventionINDEX Score Summary
| Month | Score |
|---|---|
| April 2025 | 1.75% |
| March 2025 | 1.56% |
| February 2025 | 1.91% |
| January 2025 | 1.75% |
| December 2024 | 1.78% |
| November 2024 | 1.29% |
Over the past six months, the Colorado inventionINDEX Score has demonstrated relative consistency with moderate fluctuations. The average score during this period is approximately 1.67%, with the highest being 1.91% in February 2025 and the lowest at 1.29% in November 2024. April 2025 shows a slight uptick from March, returning to 1.75%, which matches the score from January. This indicates a return to a stable innovation climate after a brief dip in March.
A higher inventionINDEX Score, such as those seen in February and April, signals a healthy R&D environment. These periods may correspond with increased patent filings, new technology development, and academic-industry collaborations. This upward momentum can attract more investments, foster job creation, and promote a more dynamic startup ecosystem. Companies are likely to feel more confident in committing resources to research in such a favorable climate.
On the other hand, lower scores—like the 1.29% in November 2024—can indicate stagnation in creative output or a temporary slowdown in innovation activity. This might stem from reduced funding, workforce challenges, or external factors affecting productivity. If such declines persist, they could discourage investors, slow down tech transfer activities, and put Colorado’s competitive innovation standing at risk compared to peer states.
Overall, while the inventionINDEX has seen modest fluctuations over the past six months, the score’s recovery from the November low is encouraging. Policymakers and stakeholders should aim to support innovation continuity through incentives, funding, and infrastructure that nurture long-term R&D sustainability.
Discussion:
In April, the Colorado inventionINDEX scored a positive sentiment which was higher than the previous year’s average and 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 Colorado office provides R&D tax credit consulting and advisory services to Denver, Colorado Springs, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Westminster, Pueblo and Centennial.
Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.
