June 2025: 1.20% (C+ grade)

Utah inventionINDEX June 2025: 1.20% (C+ 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).

Over the past 12 months, Utah’s inventionINDEX score has demonstrated noticeable fluctuations, with June 2025 recording a score of 1.20%. While this figure is lower than the previous month’s 1.44%, it still represents a relatively healthy performance when viewed in the context of the broader yearly trend. Utah’s highest score in this period occurred in July 2024, reaching 1.78%, while the lowest point was observed in August 2024 at 0.99%. The most recent figure suggests a moderate position-above the yearly low but also falling short of the state’s top innovation months.

A closer inspection of the quarterly patterns reveals that Utah tends to oscillate between spikes and slight regressions. For instance, after a drop in August 2024, the score rebounded sharply in October with 1.73%. A similar pattern is visible between February and April 2025, where the score climbed from 1.60% to a peak of 1.66% before tapering slightly. This cyclical behavior may point to seasonal or policy-driven effects on the local innovation ecosystem. The decrease seen in June 2025, though not alarming, may warrant attention if it marks the beginning of another downward trend.

A higher inventionINDEX score often signals a thriving innovation environment, characterized by increased patent activity, technological development, and research output. For Utah, stronger scores reflect positively on the state’s attractiveness to tech firms, venture capital, and academic talent. It can also enhance economic development by fostering job creation and raising the profile of local universities and research centers. Consistent performance above 1.40% typically indicates a well-aligned innovation infrastructure with stable momentum.

On the other hand, if the score continues to slip below recent averages, it could indicate weakening innovation capacity or reduced intellectual property output. This might stem from reduced R&D investment, policy shifts, or talent outmigration. A prolonged decline could affect Utah’s ability to compete with more innovation-intensive states and might discourage long-term investment. Therefore, while the current 1.20% score is not cause for immediate concern, maintaining or improving it will be critical to sustaining Utah’s growth and competitiveness in the innovation economy.

Discussion:

In June, the Utah inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a 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.

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