UTAH INVENTIONINDEX | APRIL 2025

April 2025: 1.66% (B+ grade)

Utah inventionINDEX April 2025: 1.66% (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).

Utah inventionINDEX: Six-Month Trend Analysis

Over the past six months, Utah’s inventionINDEX score has shown notable fluctuation, with recent data suggesting a moderate rebound in April 2025. The index rose to 1.66%, following a slight dip to 1.40% in March and 1.44% in January. These figures contrast with the low of 1.04% seen in November 2024, marking a general upward trend since then. The most significant increase occurred between November and October, where the score jumped from 1.04% to 1.73%, reflecting renewed innovation momentum.

A higher inventionINDEX score typically indicates increased patent activity, technological development, and startup engagement. April’s rebound suggests a surge in creative output, likely fueled by post-holiday R&D efforts or fiscal-year project launches. This trend can positively influence venture capital interest, job creation in tech sectors, and Utah’s national innovation reputation.

Conversely, lower scores, like those seen in November and December, may signal lagging innovation or economic uncertainty. Such periods could lead to reduced investor confidence and slowed tech sector growth. If not reversed, prolonged dips might deter entrepreneurs and hinder long-term competitiveness. Therefore, maintaining upward momentum is essential to sustaining innovation-driven growth.

Discussion:

In April, the Utah 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 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 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.