IDAHO INVENTIONINDEX | JULY 2025

July 2025: 1.84% (A+ grade)

Idaho inventionINDEX July 2025: 1.84% (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).

Idaho inventionINDEX Scores – Last 12 months

Based on the provided data, Idaho’s inventionINDEX score for July 2025 stands at 1.84%, earning a rating of A+. This score represents a notable improvement over the preceding months, rising from 1.25% in June and 1.53% in May. While the current score is strong, it is worth noting that it is not the highest recorded in the past 60 months. The index has reached over 4% in the past, with a score of 4.29% in July 2023. The score also reached a low point of 0.11% in June 2023, showcasing significant volatility over the past five years. Overall, the current A+ rating for July 2025 indicates a robust and active period of innovation compared to the immediate prior months, though it remains below some of the state’s historical peaks.

A higher inventionINDEX score, particularly one in the A range, is generally considered a positive indicator for a state’s economic health and future prospects. It signifies a strong environment where innovation is flourishing, which can be a key driver of economic growth. A high score suggests a healthy relationship between GDP growth and new patent production, indicating that inventive activity is effectively translating into tangible economic value. This can attract new businesses, foster job creation in high-tech sectors, and improve the state’s overall competitiveness in the national and global marketplace. A consistently high rating points to a dynamic and resilient economy.

Conversely, a lower score and a corresponding lower grade, such as the B- and C+ ratings seen in late 2024 and early 2025, can signal potential challenges. A score in this range may suggest a slowdown in patent filings or a disconnect between inventive output and economic growth. This could be a symptom of various issues, including a decrease in research and development funding, a less favorable business climate, or a general cooling of entrepreneurial activity. A consistently low score, like the F rating in June 2023, could imply a significant stagnation in innovation, which could lead to a loss of skilled labor and a diminished capacity for future economic expansion.

The historical data for the last 60 months reveals a pattern of both significant highs and lows, with the index showing considerable month-to-month fluctuation. While the most recent score of A+ is a positive development, the longer-term trend shows that maintaining a consistently high rating is a challenge. The state has demonstrated an ability to produce exceptional periods of innovation, as seen in late 2023 and early 2024, but these have been interspersed with less robust periods. This suggests that while Idaho has a strong foundation for innovation, its performance is subject to cyclical shifts that warrant continued monitoring.

Discussion:

In July, the Idaho inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a considerable 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:

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.

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