February 2026: 1.34% (B- 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).
The Utah inventionINDEX score for February 2026 sits at 1.34 percent, earning a B- rating. This represents a modest recovery from the 1.23 percent recorded in January 2026, which carried a C+ rating. However, when viewed against the performance from one year ago in February 2025, which saw a robust 1.60 percent and a B+ rating, the current figure suggests a cooling period in local innovation metrics. The index has experienced several fluctuations over the past year, alternating between high-performing months like December 2025 at 1.63 percent and more conservative dips like the one seen at the start of the current year.
Looking back across the full sixty-month historical window, the index demonstrates a significant degree of volatility within a generally healthy range. The highest point of performance occurred in November 2023, when the score surged to 2.89 percent with an A+ rating. Conversely, the lowest point was recorded in April 2021 at a mere 0.57 percent, resulting in a D- rating. Most of the data points from 2024 and 2025 cluster within the B- to B+ range, indicating that while the peak seen in late 2023 has not been sustained, the index has successfully avoided the deep lows experienced in the early months of the 2021 cycle.
A higher grade on the inventionINDEX signifies a thriving environment for creativity and technical advancement. When the score climbs into the A range, it often reflects an increase in intellectual property filings, a higher rate of research and development activity, and a more favorable climate for venture capital investment. These positive outcomes lead to job creation within the technology sector and bolster the reputation of Utah as a hub for forward-thinking industries. A strong rating suggests that the state ecosystem is operating at peak efficiency, providing a competitive edge in the global marketplace.
On the other hand, a lower score or a downward trend in the rating carries negative implications for the regional economy. When the index falls toward the C or D range, it may indicate a stagnation in new ideas or a lack of resources for local inventors. Lower grades often coincide with reduced investor interest and a potential slowdown in the commercialization of new technologies. If these metrics remain low for an extended period, the region risks losing talent to more innovative markets, which can hamper long-term economic growth. Monitoring these shifts is essential for stakeholders who aim to maintain a steady trajectory of progress and ensure that the spirit of invention remains a central pillar of the economy.
In February, the Utah inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a slight 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 Utah office provides R&D tax credit consulting and advisory services to Salt Lake City, West Valley City, Provo, West Jordan, Orem, Sandy, Ogden, St George, Layton, and Taylorsville.
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.
What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725. Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
Our Fees
Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
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