Montana inventionINDEX September 2026: 4.54% (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 Montana inventionINDEX reached 4.54% in September 2026, demonstrating a noticeable recovery from the multi-year low of 2.27% recorded in July 2026 and the 3.63% registered in August 2026. Across the 60-month historical observation period, the overall average score stands at approximately 4.99%, placing the latest reading slightly below the long-term baseline but firmly within a healthy range. While the average monthly score in 2026 of 3.50% reflects a calmer period relative to annual averages in 2025 (4.73%), 2024 (5.77%), and 2023 (5.22%), the state has consistently maintained a top-tier A+ rating throughout the entire span, showing structural resilience despite shifting performance levels.

A deeper examination of historical cycles reveals that the index has experienced pronounced fluctuations, peaking at 11.13% in November 2022 with secondary surges such as 8.85% in February 2025 and 8.40% in July 2024. In contrast, 2026 has exhibited narrower movements, rebounding from consecutive contractions in April (2.49%) and July (2.27%) back toward mid-range values. This trajectory suggests that while recent innovation output has stabilized from earlier cyclical highs, the current momentum indicates a steady normalization toward historical benchmarks.

Achieving higher inventionINDEX scores and preserving an A+ rating generates several positive economic outcomes for Montana. Strong index figures reflect heightened inventive capacity, robust patent production, and accelerating technological advances across key industries. These elevated metrics enhance regional competitiveness, signal economic vitality to venture capitalists, and encourage increased funding for local research and development, ultimately driving high-skilled job growth and commercial expansion.

Conversely, sustained lower index scores present distinct strategic challenges and economic risks. Lower readings signal potential slowdowns in intellectual property generation, delayed commercialization pipelines, or temporary reductions in research output across academic and corporate sectors. If lower scores persist over extended periods, they can dampen investor confidence, reduce capital inflows, and highlight the need for targeted institutional support to revitalize the regional innovation ecosystem.

Discussion:

In September, 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 in contrast to the prior 12 months, which experienced a considerable 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 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.