Idaho inventionINDEX Scores – Last 12 months

The Idaho inventionINDEX score for February 2026 sits at 1.31 percent, maintaining the same level observed in January. This consistency suggests a period of stabilization after a notable drop from the 1.63 percent recorded in December 2025. While the current B rating indicates a respectable level of performance, it remains significantly lower than the peak performance periods seen over the last five years. When compared to the concluding months of 2025, the index reflects a transition from an A rating into a more moderate B range, signaling a slight cooling in the state’s innovation metrics as it enters the new year.

Taking a broader view of the past 60 months, the current score resides in the lower-middle tier of the historical data. The index reached its zenith in July 2023 with a high of 4.29 percent, followed by a strong 3.26 percent in August of the same year. These figures stand in stark contrast to the anomalous low of 0.11 percent recorded in June 2023, which remains the only F rating in the five-year history. Current trends suggest that while Idaho has moved far beyond that historical low, it has yet to recapture the momentum that drove scores above the 2.0 percent threshold frequently seen throughout 2023 and early 2024.

A higher inventionINDEX score, particularly those reaching the A or A plus categories, yields significant positive outcomes for the regional economy. When the score climbs toward the 2 percent mark or higher, it typically reflects a surge in intellectual property development and a robust environment for entrepreneurs. Such high grades serve as a magnet for venture capital and high-tech industry interest, suggesting that Idaho is operating at peak creative capacity. These periods of high scores foster a culture of progress that encourages researchers and inventors to keep their operations within the state, ultimately driving job creation and long-term economic resilience.

Conversely, lower scores and declining ratings like the current B or the occasional B minus carry negative implications for the state’s future growth. A lower index score often indicates a slowdown in the translation of ideas into tangible inventions, which can lead to a loss of competitive advantage relative to other innovative hubs. If the score continues to stagnate or drops toward the C plus range seen in late 2024, there is a risk of a brain drain as top talent seeks more dynamic ecosystems elsewhere. Maintaining a focus on reversing these downward trends is essential to avoid the stagnation that characterized the more difficult months in this 60-month cycle.

Discussion:

In February, the Idaho inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast 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:

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.