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 March 2026 reflects a resilient innovation landscape, closing at 1.28 percent with an A- rating. This performance marks a healthy recovery from the slight deceleration observed in February, where the index dipped to 1.15 percent. By regaining momentum in the first quarter of the year, the state demonstrates a consistent ability to rebound from short-term fluctuations. When compared to the beginning of 2026, the current score suggests that Maryland’s creative economy is entering the spring season with renewed vigor, positioning itself well within the upper tier of the historical grading scale.

Taking a broader view of the last 60 months, the current 1.28 percent score stands as a significant improvement over several previous years. For instance, it notably outpaces the March 2025 score of 1.04 percent and the March 2023 score of 1.03 percent, both of which resulted in C ratings. While the index has not yet returned to the record peaks of 1.59 percent seen in March 2021 or October 2023, it remains remarkably stable. This stability is particularly evident when contrasted with the extreme outlier of May 2023, when the index plummeted to 0.58 percent, representing the only F rating in the five-year history provided.

The benefits of maintaining a high inventionINDEX grade, particularly in the A or A+ range, extend throughout the state’s economic ecosystem. A high score typically signals a surge in patent activity, robust academic research, and a heightened level of venture capital interest. When the rating reaches an A+, such as the 1.42 percent recorded in April 2025 or the 1.49 percent in July 2025, it indicates an environment where innovation is being successfully scaled and commercialized. These periods of high performance foster high-value job creation and enhance Maryland’s reputation as a premier hub for technological and scientific advancement on a national level.

Conversely, a descent into lower ratings carries negative implications for long-term growth and competitiveness. Scores that fall into the C or D categories often reflect a stagnation in the innovation pipeline, where new ideas may be struggling to find the necessary funding or institutional support to move forward. The rare occurrence of an F rating serves as a critical warning of systemic bottlenecks or external economic pressures that discourage risk-taking. Such downturns can lead to a decrease in business confidence and a potential migration of talent to more active markets, underscoring the importance of strategic interventions to maintain a consistently high index score.

Discussion:

In March, 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 in contrast 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.