June 2025: 1.00% (C- grade)

New Mexico inventionINDEX June 2025: 1.00% (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).

New Mexico recorded an inventionINDEX score of 1.00% in June 2025, down from 1.37% in May. Although it marks a slight decline, the result aligns with a broader pattern of stability over the past year. The state has avoided extreme fluctuations, maintaining a steady pace of inventive activity.

The June figure continues a trend where monthly scores remain within a narrow range. Most months have hovered between 1.20% and 1.60%, with peaks in January 2025 (1.61%) and July 2024 (1.69%). These highs likely reflect targeted innovation efforts, such as university-led projects or industry-specific patent pushes.

Higher inventionINDEX scores often point to an active research and development environment. They may also signal growing collaboration between public and private sectors. When consistent, elevated scores help attract investment and strengthen New Mexico’s reputation in innovation-heavy industries.

However, if the score remains low in future months, it may warrant closer attention. A prolonged dip can suggest fewer patent filings, limited funding, or reduced support for R&D. Keeping track of these trends will be key to maintaining long-term momentum in the state’s innovation economy.

Discussion:

In June, the New Mexico inventionINDEX scored a negative sentiment which was lower than the previous year’s average and underperformed 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 New Mexico office provides R&D tax credit consulting and advisory services to Albuquerque, Las Cruces, Rio Rancho, Santa Fe, and Roswell.

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. 

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