UTAH INVENTIONINDEX | DECEMBER 2025
December 2025: 1.63% (B+ grade)
Utah inventionINDEX December 2025: 1.63% (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 Scores – Last 12 months
| Month | inventionINDEX Score |
| December 2025 | 1.63% |
| Nov 25 | 1.39% |
| Oct 25 | 1.31% |
| Sep 25 | 1.63% |
| Aug 25 | 1.56% |
| Jul 25 | 1.70% |
| Jun 25 | 1.20% |
| May 25 | 1.44% |
| Apr 25 | 1.66% |
| Mar 25 | 1.40% |
| Feb 25 | 1.60% |
| Jan 25 | 1.44% |
| Dec 24 | 1.30% |
The Utah inventionINDEX concluded December 2025 with a score of 1.63%, yielding a B+ rating. This performance represents a noteworthy rebound from the relative stagnation observed in the preceding two months, where scores dipped to 1.31% in October and 1.39% in November. By reclaiming the 1.63% mark—a figure identical to the September 2025 results—the index demonstrates a resilient end-of-year momentum. This upward shift suggests that the local innovation ecosystem is effectively navigating seasonal fluctuations and maintaining a trajectory that exceeds the immediate short-term averages.
When viewed within the context of the last 60 months, the current B+ rating places December 2025 above the five-year historical average of approximately 1.49%. The data reveals a highly dynamic landscape, characterized by significant peaks such as the 2.89% (A+) achieved in November 2023 and historical lows like the 0.57% (D-) recorded in April 2021. The current stability at 1.63% indicates that while the index is not currently testing its all-time highs, it remains well-positioned within the upper quartile of its typical performance range. This consistent placement in the B to A- range over the final quarter of 2025 signals a period of reliable growth compared to the more volatile fluctuations seen in previous years.
A higher inventionINDEX score and its associated grades, such as the A and B+ levels frequently seen in recent cycles, provide a strong signal of economic vitality and creative output. These grades often correlate with increased patent activity, venture capital interest, and a robust talent pipeline that attracts high-tech industries to the region. A high rating serves as an indicator that the state intellectual property environment is thriving, fostering a climate where new ideas can be successfully commercialized. This level of performance enhances Utah’s reputation as a leader in innovation, providing a competitive advantage that can drive long-term prosperity and sustainable development.
Conversely, periods of lower scores, such as the C and D ratings observed intermittently over the five-year span, carry cautionary implications for the local economy. A lower inventionINDEX score may suggest a contraction in research and development investment or a temporary bottleneck in the transition from concept to creation. Such dips often reflect broader macroeconomic challenges or local shifts in industry focus that could lead to reduced competitiveness if not addressed. Sustained lower ratings could result in a loss of momentum, making it more difficult to attract top-tier innovators and potentially slowing the pace of job creation within the technology and manufacturing sectors.
Discussion:
In December, 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 similar to the prior 12 months, which experienced a slight 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 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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
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