COLORADO INVENTIONINDEX | MAY 2025
May 2025: 1.86% (A+ grade)
Colorado inventionINDEX May 2025: 1.86% (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 Colorado inventionINDEX Score for May 2025 rose to 1.86%, reflecting a moderate increase from April’s 1.75% and marking one of the stronger performances over the past year. This upward movement suggests a renewed momentum in Colorado’s innovation activity, potentially driven by increased patent filings, R&D investments, or commercialization of new technologies. While not the highest mark in the 12-month span, May’s score is notably above the annual average, indicating relative consistency in inventive output and supporting a cautiously optimistic outlook for the state’s innovation economy.
A comparison to historical data reveals that the May 2025 score sits well above some of the more sluggish months, such as November 2024, which posted a 1.29%, and August 2024, which saw a dip to 1.43%. These lower scores may have indicated periods of economic uncertainty, delays in the innovation pipeline, or reduced activity in sectors typically driving patentable advancements. The current rise above these points reflects resilience and possibly a strategic realignment within key industries to prioritize intellectual property as a lever for growth and competitiveness.
Positive implications of the higher May score are multifaceted. A strong inventionINDEX often correlates with greater venture capital interest, enhanced university and corporate research engagement, and a more dynamic startup ecosystem. For policymakers and economic developers, an uptick in the score can justify continued or increased support for innovation infrastructure, such as incubators, tax incentives, and tech-transfer programs. This can feed a virtuous cycle where higher innovation begets further investment and economic diversification.
Conversely, had the May score declined or stagnated, it might have raised concerns about a slowdown in innovation readiness or a lag in translating research into tangible outputs. Persistent low scores could deter private-sector investment, signal inefficiencies in IP strategy execution, or reflect workforce skill gaps. In that context, maintaining a rising or at least stable inventionINDEX is critical for Colorado to sustain its position as a regional innovation leader and to buffer its economy against external pressures such as global competition or shifting federal policy.
Discussion:
In May, 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 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.
