June 2026: 4.08% (A+ grade)

Montana inventionINDEX June 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).

Historical Montana inventionINDEX Scores

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

The recent performance of the Montana inventionINDEX demonstrates a period of stable and resilient growth as it moves through the mid-2026 calendar year. In both May and June 2026, the index achieved a consistent score of 4.08% with a top-tier A+ rating, representing a notable recovery from the yearly low of 2.49% recorded in April 2026. While the mid-2026 scores sit slightly below the historical 60-month average of approximately 4.96%, the steady upward movement from the first quarter of the year highlights a positive trajectory. This recent performance suggests that the local innovation ecosystem is successfully navigating economic fluctuations, reinforcing a steady baseline for inventive activity and patent output across the region.

Examining the broader historical data reveals significant volatility over the last 60 months, anchored by dramatic peaks and valleys. The absolute pinnacle of the index occurred in November 2022, when the score surged to an impressive 11.13%, followed closely by other strong periods such as February 2025 at 8.85% and July 2024 at 8.40%. Conversely, the historical nadir took place in July 2021, where the index plummeted to a mere 0.68%, which also triggered a steep downgrade in the rating to a D. Aside from that single anomalous month in 2021, the Montana inventionINDEX has maintained an uninterrupted A+ rating, illustrating a powerful long-term capacity for maintaining high standards of quality and excellence despite changing market conditions.

Achieving higher index scores and sustaining an elite A+ grade yields numerous positive outcomes for the regional economy and its intellectual property landscape. An elevated score signifies a thriving environment for research and development, characterized by an accelerated pace of technological breakthroughs and robust commercialization efforts. This exceptional performance builds substantial investor confidence, making the region highly attractive for venture capital and strategic corporate partnerships. Furthermore, a consistent high ranking enhances the reputation of local academic and private research institutions, which helps draw top-tier scientific talent and secures additional federal and state grants to fund future innovations.

On the other hand, a lower index score or a decline in the overall grade carries serious negative implications that can jeopardize future economic expansion. When the score falls significantly, as seen during the contraction to 0.68% in July 2021, it indicates a severe slowdown in creative output, fewer regulatory approvals, or sudden institutional bottlenecks. Such declines can discourage stakeholders, reduce the willingness of financial institutions to fund speculative tech ventures, and prompt local innovators to relocate to more supportive environments. Ultimately, a prolonged dip in the index could lead to a loss of competitive advantage, threatening the long-term sustainability of the regional technology sector and stalling economic diversification.

Discussion:

In June, 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 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.