MONTANA INVENTIONINDEX | MAY 2025
May 2025: 8.17% (A+ grade)
Montana inventionINDEX May 2025: 8.17% (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).
The inventionINDEX Score for May 2025 shows a significant uptick, rising to 8.17%, the second-highest score in the 13-month span covered. This marks a strong rebound from April 2025’s 4.31%, suggesting a recent surge in innovation-related activity across Montana. When viewed against the broader trend, the May 2025 figure positions itself prominently above the rolling average for the past year, which hovers closer to the 5.8% range. Such a sharp increase typically signals a favorable environment for inventors, with heightened patent filings, technology development, and institutional research outputs contributing to the spike.
The previous high point was in July 2024, with an 8.40% score, suggesting that Montana experiences periodic innovation peaks. These months of high performance often align with increased funding cycles, research grant disbursements, or policy shifts that incentivize creative output. The current May 2025 figure may similarly be attributed to either seasonal innovation patterns or the result of strategic efforts from universities and private sector stakeholders. Positive outcomes of this elevated score include a stronger positioning of Montana in national innovation rankings, increased investor confidence, and potentially improved job creation in high-tech sectors.
Conversely, the consistently lower scores from August 2024 through March 2025, ranging mostly between 4.31% and 6.13%, indicate periods of stagnation or reduced inventive momentum. While not necessarily reflective of a lack of creativity, these lower figures could point to bureaucratic hurdles, funding limitations, or insufficient collaboration between academia and industry. Sustained lower scores may deter external investment and reduce the competitive edge of local institutions in securing federal or private R&D grants.
In this context, May 2025’s higher score is not only encouraging but critical for re-establishing a growth trajectory. If Montana can maintain or build upon this momentum, the state stands to benefit from long-term innovation gains, improved regional economic development, and stronger intellectual property portfolios. However, it is equally important for stakeholders to analyze the underlying causes of past dips to ensure future scores do not regress. A high inventionINDEX is both a signal of current health and a call for sustained commitment to innovation-friendly ecosystems.
Discussion:
In May, the Montana inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 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.
