COLORADO INVENTION INDEX – MARCH 2025
The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth.
Colorado Invention Index March 2025: 1.56% (A- grade)
Colorado Invention Index over the last year:
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).
Discussion:
In March, the Colorado Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.
Comparing the Colorado Invention Index for March 2025 (2.24%) to the previous months, we observe a steady increase in the state’s innovation output. This upward trend suggests that Colorado’s efforts to foster research and development are yielding positive results.
A higher Invention Index score reflects a robust innovation ecosystem, which can attract more investments, talent, and businesses to the state. This can lead to economic growth, job creation, and an enhanced reputation as a hub for technological advancements.
Conversely, if the Invention Index were to decline, it could indicate potential challenges in the state’s innovation landscape. A lower score might deter investors and talent, potentially slowing economic growth and diminishing Colorado’s standing in the competitive field of research and development.
Learn more about the Invention Index here.
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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
Who We Are:
Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.
Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.
