June 2026: 1.74% (A+ grade)

Colorado inventionINDEX June 2026: 1.74% (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).

Historical Colorado inventionINDEX Scores

The Colorado inventionINDEX score for the past 12 months is shown in the table below.

The Colorado inventionINDEX score for June 2026 stands at 1.74% with an A+ rating, reflecting a solid position that aligns closely with the historical median of 1.75% and the 60-month historical average of approximately 1.71%. This recent score, along with the 1.78% recorded in May 2026, demonstrates a period of steady performance that avoids the extreme volatility observed in earlier periods. For instance, the index reached a historical high of 2.44% in October 2023, while dipping to a low of 1.21% in December 2021. By maintaining a score near the long-term historical benchmark, the state shows a balanced and sustainable pace of innovation that bridges past achievements with future potential.

Examining the trajectory over the last several years reveals distinct cyclical patterns and notable resilience within the regional ecosystem. The first half of 2026 exemplifies this variability, experiencing a sharp dip to 1.24% in January before rebounding to 1.98% in March, followed by another brief retraction to 1.43% in April. Similar fluctuations occurred in previous years, such as the decline to 1.29% in November 2024 which was quickly countered by a rise to 1.91% in February 2025. These frequent shifts indicate that while the innovation landscape is subject to short-term market corrections and seasonal influences, the underlying infrastructure consistently possesses the momentum required to recover and sustain high-level performance.

Securing higher scores and top-tier grades like the A+ ratings achieved in recent months yields numerous positive outcomes for the local economy. An elevated index signifies a thriving environment for research and development, robust patent generation, and a high density of entrepreneurial activity. This strong performance builds substantial market confidence, making the region highly attractive to venture capitalists, institutional investors, and top-tier engineering talent. Furthermore, consistent high grades foster collaboration between academic institutions and private enterprises, accelerating the commercialization of new technologies and reinforcing the state as a leading hub for modern industry.

Conversely, a downward trend or a drop into lower tiers, such as the B- ratings seen in early 2022 and early 2026, carries negative implications for economic growth. A depressed score often indicates underlying challenges, including capital scarcity, regulatory hurdles, or a slowdown in the translation of research into viable commercial products. Persistent low scores can diminish external investor enthusiasm, slow down the rate of business formation, and place the region at a competitive disadvantage against other emerging technology clusters. Over time, a prolonged contraction in innovation output risks triggering a talent drain, as specialized professionals seek opportunities in more dynamic and better-funded ecosystems.

Discussion:

In June, the Colorado 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 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.