NEW MEXICO INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.69% (A+ grade)

New Mexico inventionINDEX September 2025: 1.69% (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 September 2025 stands at 1.69%, earning an A+ grade. This score, while positive, is notably lower than the previous month’s 7.81% (also an A+), and slightly above the 1.40% recorded in September 2024. Over the past year, the index has seen fluctuations, with highs such as August 2025’s 7.81% and lows like June 2025’s 1.00% (C- grade). Comparing this to the broader 60-month trend, the current A+ rating indicates a generally strong performance, though it suggests a slight deceleration from the peak innovation output observed in August.

A higher inventionINDEX score and grade, such as the A+ received in September 2025, signifies robust innovation output within the state. This positive sentiment reflects a healthy economic environment where GDP growth is effectively outpacing patent production growth, or at least maintaining a strong balance. Such outcomes are indicative of a dynamic economy, fostering an environment conducive to research and development, and ultimately, economic recovery and resilience. States with consistently higher grades are better positioned to navigate economic challenges and attract further investment in innovative sectors.

Conversely, a lower inventionINDEX score or grade, such as the C- seen in June 2025 or the D- in March 2023 (0.73%), carries negative implications for the state’s economic outlook. These lower grades suggest that innovation output is either stagnant or declining relative to economic growth, potentially indicating a less vibrant R\&D landscape. Such trends could signal underlying economic vulnerabilities, including reduced investment in innovation, challenges in commercializing new ideas, or a slower pace of economic recovery following disruptions. Sustained lower scores may deter new businesses and talent, impacting long-term economic prosperity.

Analyzing the historical data, the New Mexico inventionINDEX has demonstrated periods of both strong performance and more moderate output. While September 2025’s A+ is commendable, the dip from August’s higher score suggests the need for continued monitoring. The overall trend, however, indicates that New Mexico generally maintains a positive innovation sentiment. Understanding these fluctuations and their underlying causes is crucial for policymakers and businesses to implement strategies that foster sustained innovation and ensure the state remains competitive in the evolving economic landscape.

Discussion:

In September, the New Mexico inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed 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 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. 

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.