August 2025: 1.21% (B grade)

Maine inventionINDEX August 2025: 1.21% (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).

Maine inventionINDEX Scores – Last 12 months

Based on the historical data for the Maine inventionINDEX, a detailed analysis reveals significant fluctuations in the state’s innovation performance over the last five years. The latest score of 1.21% in August 2025, corresponding to a ‘B’ rating, represents a notable rebound from the dip to a ‘D-‘ in June of the same year. While this is a strong performance, it falls below the peak scores of 1.78% and 1.50% achieved in March 2024 and October 2023, respectively. This demonstrates that while the state has a capacity for high-level innovation, its performance is not consistently maintained at the highest tier, a pattern that has characterized its scores over the entire 60-month period.

A high inventionINDEX score and its associated ‘A’ or ‘B’ rating are indicative of a robust and dynamic environment for intellectual property and innovation. Such a positive outcome signals that the state’s ecosystem is effectively fostering new ideas, and that these innovations are being successfully commercialized or patented. This can lead to a variety of positive results, including heightened investor confidence, attracting a talented and skilled workforce, and stimulating economic growth through the creation of new businesses and industries. The impressive grades seen in late 2023 and early 2024, for example, would have likely positioned the state as a leader in technological and creative advancement.

Conversely, a lower score, particularly those in the ‘D’ and ‘F’ range, suggests potential weaknesses within the state’s innovation framework. A prolonged period of low scores, such as the one from late 2022 to early 2023, could imply a stagnating environment for new ventures. This might be a result of various factors, including a lack of research funding, inadequate support for startups, or a decline in creative output. The negative implications of such a trend could include reduced job creation, a flight of entrepreneurial talent to more fertile grounds, and a loss of competitive standing in the broader economic landscape, potentially hindering long-term prosperity.

In summary, the historical data for the Maine inventionINDEX illustrates a cyclical pattern of growth and contraction in the state’s innovation activity. The recent recovery to a ‘B’ rating is a positive sign of the state’s resilience and ability to nurture invention. However, the history of significant fluctuations underscores the importance of consistent policy and investment to maintain high performance. A sustained effort to support and incentivize innovation will be crucial to avoiding future downturns and ensuring a more stable and prosperous economic future.

Discussion:

In August, the Maine 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 Maine office provides R&D tax credit consulting and advisory services to Portland, Lewiston, Bangor, South Portland and Auburn.

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.