July 2025: 1.49% (A+ grade)

Maryland inventionINDEX July 2025: 1.49% (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).

Maryland inventionINDEX Scores – Last 12 months

The Maryland inventionINDEX in July 2025 stands at 1.49%, earning an A+ rating. This recent performance places it significantly above the 60-month average score of 1.27%, suggesting a strong and positive trajectory for the state’s innovation climate. While the score is not the highest recorded, it represents a robust showing and indicates a return to the upper echelons of performance seen in previous high-water marks. The historical data shows a dynamic range, from a low of 0.58% in May 2023 to a peak of 1.59% in March 2021 and October 2023. This fluctuation highlights the non-linear nature of innovation, but the current score suggests a strong and resilient environment.

A high inventionINDEX score, such as the current 1.49% with an A+ rating, generally reflects a healthy and thriving ecosystem of innovation. These high ratings are often correlated with a strong influx of venture capital, increased patent filings, and the establishment of new, high-growth technology companies. A consistently high score indicates that the state is not only fostering new ideas but is also successfully translating them into tangible economic value and job creation. This environment makes Maryland an attractive location for both established corporations seeking to innovate and startups looking for a supportive launchpad. The periods of sustained A and A+ ratings, such as from July 2020 through December 2021, and again in much of 2024 and 2025, coincide with a period of notable growth and strategic initiatives.

Conversely, a lower inventionINDEX score and a corresponding lower rating carry negative implications for the state’s innovation landscape. Scores in the C and F range, such as the 0.58% recorded in May 2023, suggest potential challenges. These lower scores may point to a downturn in research and development spending, a decrease in entrepreneurial activity, or a slower pace of technological adoption. Such periods can lead to a less competitive economy, a brain drain as talent seeks opportunities elsewhere, and a decrease in the overall dynamism of the business community. While these downturns can be temporary, they serve as a critical signal for policymakers to re-evaluate and reinforce strategies that support and incentivize innovation.

In conclusion, the inventionINDEX for Maryland provides a valuable longitudinal view of the state’s innovation performance. The current high score and rating of A+ are encouraging, signaling a period of robust growth and inventive activity. By understanding the historical context and the factors contributing to both high and low scores, stakeholders can better appreciate the progress being made and the challenges that may lie ahead. Maintaining a high score requires continued strategic investment and a supportive regulatory environment to ensure that Maryland’s innovation economy remains a leader.

Discussion:

In July, the Maryland 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 Maryland office provides R&D tax credit consulting and advisory services to Baltimore, Frederick, Rockville, Gaithersburg, Bowie, Hagerstown, Annapolis, College Park, Salisbury and Laurel.

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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