COLORADO INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.82% (A+ grade)

Colorado inventionINDEX September 2025: 1.82% (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).

Colorado inventionINDEX Scores – Last 12 months

The Colorado inventionINDEX for September 2025 stands at 1.82%, earning an A+ rating. This score indicates a strong performance, aligning with the positive sentiment associated with grades above a C. When comparing this to the previous 60 months, Colorado has consistently demonstrated a robust innovation output, frequently achieving A and A+ ratings, which suggests a resilient economic environment conducive to patent production and GDP growth. Such sustained higher grades are indicative of a healthy innovation ecosystem, fostering economic recovery and growth.

A higher inventionINDEX score, particularly an A or A+ rating, signifies a period of strong innovation output where GDP growth is effectively matched or exceeded by patent production growth. This positive correlation suggests an economy that is not only expanding but also generating new intellectual property, which can lead to future economic advantages, job creation, and increased competitiveness. These periods of elevated scores often reflect effective R\&D investments, a supportive business environment, and a skilled workforce, all contributing to a favorable economic outlook.

Conversely, a lower inventionINDEX score, such as the B or B- ratings observed in some months, signals a potential deceleration in innovation relative to economic growth. While not necessarily indicative of an economic downturn, these lower grades suggest that the pace of new patent generation might not be keeping up with the overall economic expansion. This could imply a need for re-evaluation of innovation strategies, investment in research and development, or addressing factors that might be hindering the translation of ideas into patentable inventions. Prolonged periods of lower scores could signal a weakening in the state’s long-term economic dynamism and its ability to adapt to future challenges.

Analyzing the historical data, while September 2025’s 1.82% is strong, it is slightly below some of the peak scores seen in the past, such as October 2023’s 2.44% or July 2025’s 2.23%. However, it remains firmly within the range of positive sentiment. The trend over the last 60 months shows fluctuations, but a general consistency in maintaining grades above B, highlighting Colorado’s enduring commitment to innovation. Understanding these historical patterns allows for a more informed perspective on the state’s economic trajectory and its capacity for sustained growth through intellectual property creation.

Discussion:

In September, the Colorado inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a 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.