Utah inventionINDEX August 2026: 1.68% (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.

Utah’s August 2026 inventionINDEX score of 1.68% with a B+ rating represents a solid rebound from the 1.29% (B-) registered in July 2026 and the 1.16% (C+) recorded in April 2026. Looking across the 60-month dataset, this score positions the state comfortably above its historical median, approaching high-performing periods like March 2026 (1.70%, A-) and July 2024 (1.78%, A-). While it remains below the historic peak of 2.89% (A+) established in November 2023, Utah regularly demonstrates strong cyclical momentum, routinely recovering from periodic pullbacks to sustain a firm baseline. Achieving higher scores and grades, such as the A and A+ ratings seen in November 2023 (2.89%), January 2024 (1.88%), and March 2026 (1.70%), signifies that state patent production is outstripping baseline projections relative to economic growth. Higher scores signal elevated research and development efficiency, accelerated intellectual property commercialization, and robust collaboration between academic institutions and technology sectors. These positive outcomes build corporate investor confidence, attract venture capital, and reinforce Utah’s reputation as a top-tier regional hub for technological innovation. Conversely, lower scores and grades—such as the 0.99% (C-) in August 2024, 1.01% (C) in January 2022, and 1.04% (C) in November 2024—highlight period-specific deficiencies in patent execution relative to broader economic output. A lower rating points to potential bottlenecks in patent processing, reduced private R&D expenditure, or lulls in technological output. Extended periods of lower scores carry negative implications, risking system warning flags for structural innovation deficits, potentially dampening long-term corporate investment, and signaling that overall economic growth may be temporarily decoupling from hardware and software IP creation. Evaluating the complete 60-month horizon from August 2021 to August 2026 reveals a trajectory characterized by structural resilience, with B-tier or higher ratings dominating the majority of monthly cycles. Utah consistently demonstrates an ability to rebound rapidly from short-term troughs, as evidenced by moving from 0.99% in August 2024 up to 1.73% by October 2024. This historical pattern confirms that sporadic low scores represent standard operational adjustments rather than systemic decline, keeping the state’s innovation ecosystem on a highly competitive course.

Discussion:

In August, the Utah inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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.

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.