Montana inventionINDEX July 2026: 2.27% (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.

“ Examining the historical data from July 2021 through July 2026, the Montana inventionINDEX stands at 2.27% for July 2026, maintaining a top-tier A+ rating. This recent score represents a modest pullback compared to the 60-month overall average of 4.94% and median of 4.77%. Across the full timeline, scores ranged from a peak of 11.13% in November 2022 to a low of 0.68% in July 2021, which was the only month to receive a D rating. While the July 2026 result reflects a quieter cycle compared to high-performing months like February 2025 (8.85%) or July 2024 (8.40%), it remains vastly superior to the baseline figures seen five years prior.

A broader look at multi-year trends demonstrates strong performance cycles followed by periods of consolidation. The index achieved peak annual averages in 2024 at 5.77% and 2022 at 5.60%, before moderating to an average of 4.73% in 2025 and 3.34% through the first seven months of 2026. The shift from a peak of 8.17% in May 2025 down to 2.27% in June and July 2026 illustrates a cooling period in index activity. Nevertheless, the continuous retention of the A+ rating since August 2021 highlights consistent structural stability, proving that even during lower-volume months, core institutional benchmarks remain fully satisfied.

Securing higher scores and premium ratings generates substantial advantages for the innovation ecosystem. Elevated index levels signal a thriving research pipeline, robust intellectual property creation, and strong commercial viability for new technologies. These higher marks bolster investor confidence, attracting venture capital, private enterprise partnerships, and state-level development grants. Additionally, strong ratings enhance competitive visibility, positioning local research institutions and startups as prime destinations for top-tier talent, specialized industry expertise, and strategic economic investment.

On the other hand, declining scores or lower ratings carry clear negative implications for long-term growth. When the score drops significantly, as demonstrated by the July 2021 rating of D at 0.68%, it points to potential stagnation in patent generation, reduced research and development activity, or funding bottlenecks. Extended periods of low performance can erode stakeholder trust, cause venture funding to migrate toward higher-performing regions, and slow the overall pace of commercialization. Sustaining proactive support for local inventors remains vital to avoiding these downturns and protecting ongoing progress. ”

Discussion:

In July, the Montana inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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.