August 2025: 1.24% (B- grade)

Idaho inventionINDEX August 2025: 1.24% (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).

Idaho inventionINDEX Scores – Last 12 months

The Idaho inventionINDEX score for August 2025, at 1.24%, presents a notable decrease from the previous month’s score of 1.84% and a drop in rating from A+ to B-. This recent downturn places the current score below the historical average for the past 60 months, which stands at approximately 1.68%. While the July score was exceptionally high, aligning with some of the best historical performances, the August score is more in line with the trend observed earlier in 2025. The data shows significant volatility, with scores fluctuating widely between a low of 0.11% in June 2023 and a high of 4.29% in July 2023. This variability indicates that while periods of high innovation are possible, they are not always sustained.

A consistently high inventionINDEX score and a strong rating, such as an A or A+, signal a vibrant and productive ecosystem for innovation. A higher score suggests that new intellectual property is being created at a robust pace, which is a powerful indicator of economic vitality. This positive momentum can attract crucial investment capital, draw skilled professionals and entrepreneurs to the state, and foster a perception of Idaho as a hub for future-focused industries. The confidence gained from a strong score can lead to a self-reinforcing cycle of growth, where success in innovation begets further investment and talent, solidifying the state’s competitive advantage.

Conversely, a lower inventionINDEX score and a rating of B- or below can have negative implications for Idaho’s innovation landscape. A prolonged period of declining scores could suggest a slowdown in the creation of new inventions or a less-than-optimal environment for innovation. This may cause investors to hesitate and potential talent to seek opportunities in more dynamic regions. A lower score can also impact public perception, potentially making it more challenging for the state to secure funding for research and development initiatives. It underscores the need for strategic support to ensure the innovation pipeline remains active and resilient.

In conclusion, the recent fluctuations in the inventionINDEX highlight the need for sustained effort to maintain Idaho’s standing as an innovation leader. The sharp decline from July to August 2025 serves as a reminder that positive outcomes are not guaranteed and that a robust ecosystem requires continuous nurturing. While the state has demonstrated its capacity for high-grade performance in the past, the current trend warrants careful consideration. Moving forward, a focus on fostering a stable environment for new ideas and inventions will be key to ensuring the inventionINDEX trends upward, providing a more reliable foundation for future economic growth.

Discussion:

In August, the Idaho inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar 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 Idaho office provides R&D tax credit consulting and advisory services to Boise, Meridian, Nampa, Idaho Falls and Pocatello.

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:

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