MONTANA INVENTIONINDEX | JANUARY 2026

January 2026: 2.95% (A+ grade)

Montana inventionINDEX January 2026: 2.95% (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 Scores – Last 12 months

Gemini ha dicho

The Montana inventionINDEX has undergone a significant evolution over the past 60 months, transitioning from a period of early volatility in 2021 to a sustained era of high-tier performance. While the index began with fluctuating grades ranging from C+ to D in the first half of 2021, the subsequent years reveal a remarkably consistent A+ rating that underscores a maturing environment for regional innovation. This historical trajectory suggests that the state ecosystem has successfully established a reliable baseline for creative output and intellectual property development, moving away from the inconsistent metrics of the past.

When comparing the current January 2026 score of 2.95 percent to the broader historical data, it is evident that the figure represents a period of stabilization following several high-growth phases. This score is notably lower than the historical peak of 11.13 percent achieved in November 2022, as well as the 8.85 percent surge seen in February 2025. However, it remains significantly stronger than the 2021 lows, such as the 0.68 percent recorded in July of that year. The current performance reflects a healthy, albeit more moderate, pace of innovation that continues to secure the highest possible rating despite the numerical decrease from previous annual highs.

The positive outcomes associated with maintaining an A+ grade are substantial for the Montana economic landscape. High scores and top-tier ratings signify a robust pipeline of new ideas and a professional environment that is highly conducive to patent activity and entrepreneurial ventures. These favorable metrics serve as a beacon for external capital, as investors typically seek regions with proven records of consistent innovation. Furthermore, a high inventionINDEX score encourages local talent to invest their skills within the state, fostering a virtuous cycle of economic resilience and technological advancement that benefits the entire community.

Conversely, the historical table highlights the negative implications that arise when the score and rating falter. The period in 2021 where grades dropped to C+ and D indicates a time of potential stagnation in research and development or a lack of necessary institutional support for new inventions. Lower scores can signal a period of economic contraction or decreased competitiveness on a national scale, which often discourages potential stakeholders and slows down the commercialization of new technologies. By examining these past fluctuations, it becomes clear that maintaining the current A+ momentum is vital to avoiding the systemic vulnerabilities revealed during those earlier periods of underperformance.

Discussion:

In January, the Montana inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is similar 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.