MARYLAND INVENTIONINDEX | JANUARY 2026

January 2026: 1.20% (B+ grade)

Maryland inventionINDEX January 2026: 1.20% (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).

Maryland inventionINDEX Scores – Last 12 months

The Maryland inventionINDEX for January 2026 stands at 1.20 percent, yielding a B+ rating that indicates a steady start to the year. When viewed against the historical backdrop of the last sixty months, this figure represents a modest cooling from the 1.31 percent highs recorded in late 2025. While the current score is lower than the historical peaks of 1.59 percent seen in March 2021 and October 2023, it remains significantly elevated above the historical trough of 0.58 percent observed in May 2023. This positioning suggests that Maryland’s innovation environment is currently in a phase of stable maturity, avoiding the sharp volatility that characterized earlier segments of the five-year period.

Examining the broader trajectory reveals a pattern of cyclical performance where the index frequently oscillates between the B and A ranges. The recent score of 1.20 percent aligns closely with the historical median, demonstrating a consistent ability to sustain intellectual property output despite shifting economic conditions. During the last five years, Maryland has demonstrated resilience, recovering effectively from occasional dips into the C and F categories. The current B+ rating serves as a benchmark of reliability, indicating that the foundational elements of the state’s inventive capacity remain intact even when they are not operating at the record-breaking levels seen during the peak of 2024 and 2025.

Higher grades, particularly the A+ ratings achieved in months like July 2025 and June 2021, bring substantial positive outcomes for the regional economy. These peak scores typically correlate with increased investor interest, a higher volume of patent filings, and a more vibrant ecosystem for technology startups. When the inventionINDEX climbs toward the 1.50 percent threshold, it signals to global markets that Maryland is a primary hub for cutting-edge research and development. Such periods of excellence often lead to accelerated job creation in high-tech sectors and bolster the state’s reputation as a leader in the national innovation landscape, providing a measurable competitive advantage over neighboring jurisdictions.

Conversely, a decline in the index score presents several negative implications that require careful monitoring. When the rating falls into the C or F range, as it did during the spring of 2023, it often reflects a temporary stagnation in the translation of research into tangible assets. Lower scores can result in diminished venture capital flows and may discourage early-stage entrepreneurs from launching new ventures within the state due to perceived risks. If a downward trend persists, it risks creating a talent drain where skilled innovators seek opportunities in regions with higher perceived growth potential. Therefore, while the current B+ rating is respectable, maintaining vigilance is essential to prevent a return to the lower productivity levels that have occasionally hindered progress in the past.

Discussion:

In January, the Maryland 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 a slight 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 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.