Montana inventionINDEX March 2026: 3.18% (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).

Montana inventionINDEX Scores – Last 12 months

The Montana inventionINDEX for March 2026 settled at 3.18 percent, maintaining its prestigious A+ rating. While this figure represents a decrease from the exceptionally high 4.31 percent recorded in February, it marks a solid improvement over the 2.95 percent seen at the start of the year in January. This performance underscores a state of continued excellence in the region’s innovation sector, as the index has remained firmly in the A+ category for several consecutive years. The current score suggests that Montana’s inventive output continues to grow at a pace that significantly exceeds the baseline economic growth, reinforcing its status as a highly active hub for new intellectual property.

When analyzing the 60-month historical trend, the March 2026 score reveals a more moderate performance compared to the same month in previous years. For instance, March 2025 saw a much higher 6.13 percent, and March 2024 reached a staggering 8.17 percent. However, the current 3.18 percent is still a vast improvement over the 2.27 percent recorded in March 2021. The long-term data highlights Montana’s remarkable journey from the volatility of mid-2021, where scores dipped as low as 0.68 percent with a D rating, to a period of sustained high-tier performance. This stability indicates that the state has successfully built a more resilient infrastructure for research and development over the last five years.

The positive outcomes associated with maintaining an A+ rating are significant for Montana’s long-term economic health. A high inventionINDEX score typically signals a surge in patent filings, a vibrant environment for tech startups, and a high level of research efficiency within academic and private institutions. These conditions make the state an attractive destination for venture capital and federal research funding, which in turn fuels high-wage job creation and industrial modernization. By consistently producing innovation at these levels, Montana strengthens its competitive position on the national stage and ensures that its economy is driven by high-value, knowledge-based assets.

In contrast, the negative implications of a lower index score or a descent into the C and D ranges can be detrimental to a state’s growth trajectory. The historical lows seen in July 2021 serve as a reminder of the risks associated with stagnant innovation, such as a lack of new business formation and a potential migration of talent to more dynamic regions. When the score falls, it often reflects a period of risk aversion or a lack of institutional support for emerging inventors, which can lead to industrial obsolescence. By closely monitoring these metrics, stakeholders can implement strategic interventions during downturns to ensure that the state avoids the stagnation seen in earlier cycles and maintains its current trajectory of excellence.

Discussion:

In March, the Montana inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable upward 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 Montana office provides R&D tax credit consulting and advisory services to Billings, Missoula, Great Falls, Bozeman, and Butte.

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.