NEW MEXICO INVENTIONINDEX | AUGUST 2025

August 2025: 7.81% (A+ grade)

New Mexico inventionINDEX August 2025: 7.81% (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).

New Mexico inventionINDEX Scores – Last 12 months

The New Mexico inventionINDEX for August 2025 demonstrates a significant upturn in innovation sentiment, recording a score of 7.81% and an A+ rating. This latest figure represents a notable increase compared to the immediately preceding months, which largely hovered around the 1.00% to 1.6% range. This surge in August 2025 also positions it as a strong outlier when examining the previous 60 months, where scores typically fell within a tighter, more consistent band. Such a robust performance suggests a period of heightened inventive activity and economic potential for the state.

A higher inventionINDEX score and a favorable grade like A+ signal positive economic implications. This metric, which measures innovation output by correlating GDP growth with patent production growth, suggests that New Mexico is experiencing a period where its economic expansion is strongly supported by its innovative endeavors. Such an environment can attract investment, foster job creation, and drive further technological advancements, thereby contributing to a more resilient and dynamic economy. The positive sentiment associated with a higher score indicates a favorable outlook for businesses and innovators within the state.

Conversely, a lower inventionINDEX score and a grade below C carry negative implications for a state’s economic outlook. A score in the C- or D- range, as seen in some historical periods for New Mexico, indicates that innovation output is not keeping pace with economic growth, or may even be lagging. This could point to reduced investment in research and development, a decline in patent filings, or a general slowdown in the rate of new ideas and technologies emerging from the state. Such a trend could signal potential challenges in economic recovery, diminished competitiveness, and a less attractive environment for businesses seeking to innovate.

Considering the historical data, the August 2025 performance stands out as a strong indicator of New Mexico’s current innovative strength. While the scores have fluctuated over the past five years, with notable peaks and troughs, the recent A+ rating suggests a renewed vigor in the state’s innovation ecosystem. Maintaining or improving upon this high sentiment will be crucial for New Mexico’s continued economic development, reinforcing its position as a hub for innovation and providing a solid foundation for future growth and prosperity.

Discussion:

In August, the New Mexico inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast 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 New Mexico office provides R&D tax credit consulting and advisory services to Albuquerque, Las Cruces, Rio Rancho, Santa Fe, and Roswell.