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

The Idaho inventionINDEX for March 2026 stands at 1.39%, yielding a B rating. This figure represents a minor but positive uptick from the stagnant 1.31% observed during January and February of this year. This subtle shift suggests a modest resurgence in innovative output as the first quarter of 2026 concludes. While the current rating indicates a solid baseline of performance, it remains notably lower than the 1.63% and A rating achieved in December 2025. This gradual improvement reflects a stabilizing environment where the state is attempting to regain the momentum lost during the minor dip experienced in early winter.

Viewing this data across the full sixty-month historical spectrum reveals that Idaho is currently in a period of relative moderation. The current score is vastly improved from the historical floor of 0.11% recorded in June 2023, which resulted in a failing grade. However, it sits far below the remarkable peak of 4.29% reached in July 2023. For much of 2021 through early 2024, the state frequently enjoyed A+ ratings with scores consistently above the 2.00% threshold. The transition from late 2024 into 2025 saw a shift toward the B and B- range, indicating that while the floor has been successfully raised since the 2023 anomaly, the state has yet to return to its high-tier innovative ceiling.

Achieving a higher grade, particularly an A or A+, yields significant economic dividends by signaling a robust ecosystem for research and development. When the index moves toward the higher percentiles, it often correlates with increased patent activity, a higher volume of technology transfer, and greater confidence from venture capital investors. Such high marks make Idaho more attractive to specialized talent and technology-driven industries, fostering a virtuous cycle of growth. These periods of peak performance typically result in more robust startup activity and a diversified economy that is more resilient to shifts in more traditional sectors.

Conversely, a decline in the score toward the C range or a stagnation in the low B range carries several long-term risks. Lower ratings may suggest a bottleneck in the commercialization process or a cooling of regional entrepreneurial energy. If the index remains low or continues to fluctuate near the bottom of the B tier, it can lead to a loss of competitive edge as intellectual capital migrates toward states with more dynamic innovation ratings. Furthermore, a sustained lower score can dampen the enthusiasm of external financiers, making it harder for local innovators to secure the capital necessary for scaling their ideas. Maintaining a steady climb from the current 1.39% is therefore essential to prevent the stagnation that characterized several stretches of the previous year.

Discussion:

In March, the Idaho 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 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.