COLORADO INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.32% (B grade)

Colorado inventionINDEX November 2025: 1.32% (B 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).

Colorado inventionINDEX Scores – Last 12 months

The historical data for the inventionINDEX Score across the last 60 months reveals a generally strong and upward trend in Colorado’s inventive capacity. The overall average score for the period rests at a commendable $1.73%, with the most recent 12 months averaging $1.76%. This performance is notably higher than the $1.67% average recorded during the initial 12 months of the data, indicating a positive trajectory over the five-year span. However, this established pattern of growth necessitates careful consideration of the most recent data point. The November 2025 score of $1.32% and a corresponding B rating represents a significant decline compared to both the recent and historical averages, signaling a need for immediate and focused analysis.

A consistently high inventionINDEX Rating, particularly the $82.0% frequency of A- or higher grades, delivers substantial positive outcomes. A score frequently reaching the A+ tier, such as the peak of $2.44% achieved in October 2023, signifies a powerful and highly functional ecosystem for innovation. These high grades act as a strong economic signal, attracting significant venture capital investment, fostering an environment of strong patent generation, and drawing highly skilled talent to the region. The perception of an A-rated ecosystem validates current policy and support structures, establishing a competitive edge over other innovation hubs and driving long-term regional economic resilience.

Conversely, a lower score, particularly the recent B rating in November 2025, carries negative implications that should not be overlooked. While the historical data shows that scores in the B-tier are rare outliers, a dip suggests a potential deceleration of the pace of invention or a temporary bottleneck in the transition of novel ideas to measurable market impact. Sustained lower ratings could signal a cooling investment climate, a loss of competitive momentum, or an erosion of market confidence. If the recent drop is not an anomaly, it warrants a prompt review of the factors contributing to the decline to prevent any potential stagnation in the state’s vibrant innovation economy.

In summary, Colorado’s inventionINDEX has maintained a position of strength, demonstrating a five-year history of above-average performance that supports a narrative of robust and sustained inventiveness. Stakeholders should draw confidence from the overall long-term upward trend and the high frequency of A-tier ratings. Nevertheless, the recent score of $1.32% serves as a critical, immediate cautionary indicator. It is essential to determine whether this recent score is a temporary market correction or the first sign of a more entrenched challenge, ensuring that proactive measures are taken to restore performance to the A-tier average and secure the region’s position as a premier innovation center.

Discussion:

In November, the Colorado inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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 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.