Idaho inventionINDEX August 2026: 1.75% (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 Idaho inventionINDEX Scores

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

Historical data for the Idaho inventionINDEX across the past 60 months reveals a clear shift from the peak performance observed in mid-2023 toward a more stabilized, moderate baseline in recent years. Between mid-2022 and early 2024, the index frequently reached exceptional highs, topping out at 4.29 percent in July 2023 and sustaining scores above 2.00 percent across multiple months. In contrast, the performance throughout late 2024, 2025, and into 2026 demonstrates a compressed range, operating primarily between 1.16 percent and 1.89 percent. Despite this shift toward lower overall baseline values, the index closed the 60-month window on a positive trajectory, climbing from a low of 1.16 percent with a C+ rating in July 2026 up to 1.75 percent with an A+ rating in August 2026. Comparing recent performance to historical benchmarks highlights both underlying resilience and brief volatility within the state innovation pipeline. The index experienced a sharp anomaly in June 2023, plummeting to 0.11 percent and earning an F grade, before rebounding rapidly to its all-time high the very next month. Subsequent periods in 2024 and 2025 displayed far greater consistency, maintaining steady B-range to A-range evaluations. While recent 2026 figures have not matched the extraordinary peaks seen in 2023, the sudden recovery between July and August 2026 demonstrates that Idaho retains strong potential for rapid upward movement in its intellectual property generation relative to regional gross domestic product growth. Sustaining a high score and securing top-tier marks like an A+ grade yields significant economic benefits for the state ecosystem. A strong score reflects an expanding innovation output where patent production and research activities outpace general economic growth, signaling corporate investment and technological vitality. These elevated metrics help foster greater venture capital interest, attract specialized technical talent, and validate the effectiveness of state research and development tax credits. High ratings reassure stakeholders that research expenditure is converting efficiently into protected intellectual assets, driving long-term competitive advantages for local enterprise. Conversely, a declining score or a low grade introduces notable negative implications for economic planners and industry leaders. Drops into lower ranges, such as the C+ seen in July 2026 or the severe historical dip in June 2023, suggest a disconnection where economic output increases without a corresponding gain in commercialized innovation. Persistent lower scores can signal systemic bottlenecks in patent filing, reduced institutional spending on commercial research, or lower efficiency in turning research investments into marketable inventions. Over time, sustained weakness in the index risks dampening investor confidence, signaling potential stagnation in core technology sectors, and leaving regional businesses vulnerable to competition.

Discussion:

In August, the Idaho inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast 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.