COLORADO INVENTIONINDEX | JUNE 2025
June 2025: 1.77% (A+ grade)
Colorado inventionINDEX June 2025: 1.77% (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).
The latest Colorado inventionINDEX score for June 2025 stands at 1.77%, reflecting a modest but stable level of inventive activity across the state. This figure is slightly below May 2025’s 1.86% and February’s recent high of 1.91%, yet it is still above the 12-month average of approximately 1.75%. While not a dramatic change, the June score suggests a mild cooling in innovation intensity, particularly when contrasted with the more dynamic months of October 2024 (2.21%) and July 2024 (2.15%).
From a positive perspective, maintaining a score above the 1.75% average is a sign of consistent innovation performance. A score like 1.77% indicates that Colorado continues to foster a relatively healthy environment for invention, likely supported by its universities, research institutions, and tech startups. Sustained innovation at this level may help attract venture capital, bolster the state’s competitiveness in emerging industries, and stimulate job creation in high-tech sectors.
However, the slight decline from previous highs may signal challenges on the horizon. Lower inventionINDEX scores often correspond to fewer patent filings or a drop in breakthrough technologies, which can reflect reduced R&D investment or economic uncertainty. If the downward trend continues, it could affect the state’s reputation as a hub for innovation and weaken its appeal to knowledge-based industries.
Looking ahead, Colorado’s innovation ecosystem will need continued support to maintain and build upon current levels. This includes not only funding and infrastructure but also policy initiatives that encourage collaboration between academia, private enterprise, and government. Stability in the inventionINDEX is a positive sign, but long-term growth depends on maintaining momentum and addressing barriers to innovation.
Discussion:
In June, 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 a slight 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 if you would like to learn more about R&D tax credit opportunities.
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