May 2026: 4.08% (A+ grade)

Montana inventionINDEX May 2026: 4.08% (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 recorded a score of 4.08% accompanied by an A+ rating in May 2026, demonstrating a solid and stable foundation when measured against its historical 60-month trajectory. While this most recent figure indicates a healthy environment for ongoing innovation, it tracks slightly below the five-year historical average of approximately 4.91%. Over the last several years, the index has experienced notable shifts, moving from phases of high-growth peaks to more consolidated, consistent performances. This current positioning suggests that while the raw pace of commercial innovation has normalized relative to previous spikes, the baseline remains remarkably resilient and highly supportive of inventive activity across the region.

A deeper look into the historical dataset reveals a narrative of significant fluctuation followed by long-term structural stabilization. The index reached its absolute peak in November 2022 with an exceptional score of 11.13%, a benchmark that has not been replicated since. Conversely, the earliest months of the recorded timeline showcase the lowest points of performance, particularly in July 2021 when the index dropped to a mere 0.68% and received a D rating. Since recovering from that early volatility and securing a consistent A+ rating in August 2021, the state’s innovation index has maintained an unyielding standard of excellence in its grading, despite individual monthly scores oscillating between 2.27% and 8.85% over the subsequent years.

Achieving higher inventionINDEX scores and retaining top-tier grades carry profound positive outcomes for Montana’s economic and intellectual landscape. High scores signal an accelerating rate of patent generation, vibrant entrepreneurial activity, and robust capital investment in research and development fields. These metrics foster a fertile ecosystem that actively attracts venture capital, draws elite scientific talent to local academic institutions, and enhances overall economic competitiveness. Furthermore, a sustained elevated grade solidifies a reputation for pioneering advancements, giving businesses the confidence to expand and establish new market sectors within the state.

Conversely, lower scores or depressed grades present severe negative implications for the broader regional economy. A downward trend in the index implies a stagnation in creative pipelines, reduced funding for technological development, or an inability to convert breakthroughs into commercialized solutions. The sharp drops witnessed in mid-2021 serve as historical reminders of how quickly economic friction can stifle the invention pipeline and lower a regional grade. Such regressions can lead to capital flight, a weakened competitive position on a national scale, and a loss of specialized labor as innovators seek more supportive environments elsewhere, highlighting the critical importance of maintaining a steady and reliable trajectory.

Discussion:

In May, the Montana inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an 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.