June 2026: 1.31% (A grade)

Maryland inventionINDEX June 2026: 1.31% (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).

Historical Maryland inventionINDEX Scores

The Maryland inventionINDEX score for the past 12 months is shown in the table below.

The Maryland inventionINDEX reached a strong score of 1.31% in June 2026, earning an A rating and reflecting a notable upward trajectory in recent months. This performance marks a solid improvement from April 2026, which saw a temporary dip to 1.08% with a C+ rating, and surpasses May 2026’s score of 1.25% with an A- rating. Over the 60-month historical tracking period, the average index score stands at approximately 1.24%, positioning the current registration well above the historical norm. This positive momentum indicates that the regional innovation landscape is regaining its footing and accelerating toward higher productivity as the mid-year approaches.

When placed in a broader historical context, the June 2026 score demonstrates remarkable stability, remaining well clear of previous market lows while striving toward historical peaks. The historical data showcases a highly volatile journey, highlighted by a record high of 1.59% with an A+ rating in October 2023, and a severe low point of 0.58% with an F rating in May 2023. Compared to the same month in previous years, June 2026 outperforms June 2025 at 1.16%, June 2024 at 1.18%, and June 2023 at 1.17%, though it remains below the exceptional heights seen in June 2021 at 1.48% and June 2022 at 1.42%. This long-term view indicates that while the index has recovered fully from its deepest historical contractions, there remains room for growth to match its peak historical performance.

Achieving a higher grade on the inventionINDEX, such as the current A rating or the elite A+ tier, carries significant positive outcomes for the regional economy and innovation ecosystem. An elevated score signals a robust environment for research, patent development, and technological advancement, which naturally fosters commercialization opportunities. This strong performance builds confidence among venture capitalists, corporate sponsors, and federal agencies, leading to increased capital investment and grant funding for local startups and research institutions. Furthermore, high ratings enhance the region’s reputation, making it an attractive hub for top-tier scientific talent, engineering professionals, and entrepreneurial leaders who want to collaborate within a thriving marketplace.

Conversely, the negative implications of a lower score or descending grades, such as a C or the historical F rating, present serious risks to regional competitiveness. A declining index often points to systemic hurdles, including reduced funding, a slowdown in breakthrough discoveries, or an environment that stifles entrepreneurial risk-taking. If low scores persist, the region risks losing its competitive edge to other technology hubs, which can trigger a talent drain as researchers and entrepreneurs seek better resources elsewhere. Additionally, diminished index ratings can discourage future investments, stall economic diversification, and ultimately weaken the foundational framework that supports long-term technological and industrial growth.

Discussion:

In June, 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 similar to the prior 12 months, which experienced a slight downward 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.