February 2026: 1.46% (B+ grade)
Colorado inventionINDEX February 2026: 1.46% (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
| Month | inventionINDEX Score |
| February 2026 | 1.46% |
| Jan 26 | 1.24% |
| Dec 25 | 1.55% |
| Nov 25 | 1.32% |
| Oct 25 | 1.65% |
| Sep 25 | 1.82% |
| Aug 25 | 1.68% |
| Jul 25 | 2.23% |
| Jun 25 | 1.77% |
| May 25 | 1.86% |
| Apr 25 | 1.75% |
| Mar 25 | 1.56% |
| Feb 25 | 1.91% |
The latest inventionINDEX score for February 2026 stands at 1.46 percent with a rating of B plus. While this reflects a recovery from the 1.24 percent recorded in January, it indicates a period of relative cooling when compared to the performance observed over the previous year. Throughout much of 2025, the index frequently reached into the A range, suggesting that the current momentum is stabilizing at a more conservative level. This shift represents a transitional phase for the Colorado innovation landscape as participants adjust to evolving market conditions.
When reviewing the data across the full sixty-month cycle, the current score appears moderate. It is notably lower than historical peaks such as the 2.44 percent achieved in October 2023 or the 2.31 percent in April 2024. However, the score remains above the five-year lows seen in December 2021 and June 2022, which dipped to 1.21 and 1.24 percent respectively. The frequent appearance of A plus ratings during the 2023 to 2024 period establishes a high benchmark that the current market has yet to reclaim in the early months of 2026.
Higher grades, specifically those in the A and A plus categories, typically reflect a robust environment for intellectual property development and commercialization. When the score rises toward the two percent threshold, it often correlates with increased venture capital confidence, a higher volume of patent filings, and a more vibrant ecosystem for technology startups. These elevated ratings suggest that resources are being efficiently allocated toward research and development, which fosters long-term economic resilience and attracts top-tier talent to the region. A high index score serves as a clear signal to investors that the local economy is a primary engine for disruptive growth.
Conversely, lower scores in the B range may point toward emerging challenges in the innovation pipeline. A dip in the rating often indicates reduced risk tolerance or a slowdown in the conversion of ideas into marketable assets. Negative implications can include decreased funding for early-stage ventures and a potential loss of competitive momentum compared to other regions. If these lower scores persist, they could lead to a stagnation of growth, making it difficult for the state to maintain its leadership in high-growth industries. Strengthening the index back toward historical highs remains essential for ensuring a dynamic and sustainable economic future.
Discussion:
In February, the Colorado inventionINDEX scored a positive sentiment which was lower than the previous year’s average but 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 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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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