IDAHO INVENTIONINDEX | MAY 2025
May 2025: 1.53% (A- grade)
Idaho inventionINDEX May 2025: 1.53% (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).
Recent Trends in Idaho’s inventionINDEX Score
Idaho’s inventionINDEX Score for May 2025 is 1.53%, reflecting a slight improvement from April’s 1.21%. This increase signals a modest recovery in innovation activity. Compared to May 2024, which posted a 1.58% score, the current figure is just 0.05 percentage points lower. While the change is small, it suggests a return to stability after short-term fluctuations earlier this year.
Year-Over-Year Performance and Historical Context
Over the past 12 months, Idaho’s inventionINDEX has remained within a relatively stable range. The highest point was in June 2024 at 1.70%, while the lowest occurred in November 2024 with a score of 1.18%. Since then, the index has gradually climbed, suggesting a slow but steady rebound. May’s result continues this upward pattern, hinting at renewed momentum in research and development.
Benefits of a Higher inventionINDEX Score
When the inventionINDEX rises, it generally means more patent activity, increased collaboration between research institutions and businesses, and stronger startup performance. A high score can attract new investments and foster a climate that supports innovation. This environment not only benefits the economy but also helps position Idaho as a competitive player in the national tech and science landscape.
Risks of a Declining Score
Conversely, a lower inventionINDEX can point to weakening innovation. It may reflect fewer inventions, stalled research efforts, or a decline in entrepreneur-driven projects. If this trend continues, the state could face challenges like reduced investor interest or talent migration. Staying ahead of these risks requires sustained efforts in policy support, education, and infrastructure for innovation.
Discussion:
In May, 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 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 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.
