MONTANA INVENTIONINDEX | APRIL 2025

April 2025: 4.31% (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).

Montana inventionINDEX Score: Six-Month Performance Analysis

Over the last six months, the Montana inventionINDEX has shown noticeable fluctuations. The highest recorded score was in February 2025 at 8.85%, marking a significant innovation surge, while the most recent data from April 2025 shows a decline to 4.31%, the lowest in this half-year span. This downward trend from February suggests a cooling in innovation activity.

The elevated score in February likely indicates a period of successful patent filings, startup formations, or new technology rollouts. Such performance typically reflects robust R&D activity and investor confidence, which can attract funding and talent to Montana’s innovation ecosystem. A score above 6%, as seen in February and March, signals strong momentum and reinforces the state’s competitive edge in emerging sectors.

Conversely, the decline to 4.31% in April could point to slowed invention disclosures or reduced entrepreneurial activity. This drop, if sustained, might lead to fewer commercialization opportunities and a reduction in economic vitality. Lower scores may also signal regulatory barriers or gaps in institutional support for innovators.

Consistent performance above the 5% mark, as seen in four out of six months, still reflects a relatively healthy environment. However, the volatility highlights the need for sustained investment in innovation infrastructure to stabilize and elevate Montana’s inventive output.

Discussion:

In April, 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 a considerable 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 at a time that is convenient for you, 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.