Utah inventionINDEX July 2026: 1.29% (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).

Historical Utah inventionINDEX Scores

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

The July 2026 Utah inventionINDEX score of 1.29% (B-) reflects a noticeable retraction when evaluated against both immediate prior months and the broader 60-month historical trajectory. Coming off a robust June 2026 reading of 1.61% (B+), the latest mark represents a 0.32 percentage point drop, positioning the current index below the 60-month historical average of approximately 1.47%. Over the full five-year dataset spanning from August 2021 through July 2026, the index has experienced considerable variance, reaching a peak of 2.89% (A+) in November 2023 and a low of 0.99% (C-) in August 2024. While July’s rating of B- remains comfortably above historical trough levels, it places Utah’s innovation activity near the lower quartile of its multi-year distribution, pointing to a temporary cooling period in patenting and technical momentum.

Examining the macro trends across the 60-month sequence reveals that Utah’s inventive capacity frequently cycles through distinct expansionary and consolidation phases. The period from late 2023 to early 2024 delivered some of the strongest performances recorded, highlighted by November 2023’s peak and January 2024’s 1.88% (A) score. In contrast, 2026 has displayed heightened volatility, swinging from a strong 1.70% (A-) in March down to 1.16% (C+) in April, recovering sharply in June, and contracting again in July. Despite these short-term swings, the recurring return to B-range median scores suggests a resilient baseline of regional commercial activity, though consistent top-tier performance requires broader participation across key technology sectors.

Higher inventionINDEX scores and superior letter grades unlock substantial strategic advantages for the regional innovation ecosystem. Elevated metrics signal strong intellectual property generation, robust research funding translation, and heightened entrepreneurial initiative, which collectively attract institutional venture capital and private equity investment. When the score rises into the A tier, local startups gain enhanced credibility, venture firms display greater willingness to fund early-stage research, and corporate entities increase funding for research and development partnerships. Furthermore, sustained high ratings foster job creation in high-wage technology industries, enhancing long-term economic resilience and establishing the region as a primary destination for top-tier engineering talent.

Conversely, lower scores and downgraded ratings carry meaningful headwinds that can hinder economic growth if allowed to persist. Subdued metrics like July’s 1.29% signal a contraction in new patent filings, slower technology transfer, or potential bottlenecks in commercialization pipelines. When scores remain depressed or drift into C-level territory, risk-averse investors often tighten capital allocation, forcing early-stage ventures to downsize operations or delay product launches. Prolonged weakness can also lead to talent departure, as specialized researchers and founders relocate to regions offering more dynamic commercial ecosystems, ultimately compounding the decline in regional competitiveness and innovation yield.

Discussion:

In July, 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 in contrast 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 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.

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