Maryland inventionINDEX September 2026: 1.22% (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).

Historical Maryland inventionINDEX Scores

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

The Maryland inventionINDEX recorded a score of 1.22% with a B+ rating in September 2026, marking a solid rebound from the previous month’s score of 1.12% and B- rating. This latest figure aligns almost perfectly with the 60-month historical mean of 1.23% and matches the multi-year median of 1.22%. Looking back across 2026, the index has experienced notable shifts, moving from a low of 1.08% (C+) in April to a peak of 1.31% (A) in June. The September performance demonstrates renewed upward momentum, positioning the state back into an above-average tier relative to the dips observed in early spring.

Placing September 2026 within a broader multi-year context highlights the comparative stability of the state’s innovation metrics over time. Over the 60-month dataset, scores have ranged from a high of 1.59% (A+) in October 2023 to an anomalous low of 0.58% (F) in May 2023. The majority of historical entries cluster between 1.15% and 1.35%, reflecting consistent baseline activity. September’s 1.22% score demonstrates that Maryland remains well-anchored within its traditional performance corridor, outpacing weaker historical periods such as late 2021 and early 2023 while remaining slightly below the exceptional highs observed in late 2023 and early 2024.

Achieving higher inventionINDEX scores and top-tier grades, such as A or A+, generates several positive economic outcomes for the region. Strong scores signal a thriving ecosystem characterized by vigorous patent activity, strong capital investment, and robust technology transfer from research institutions. High ratings instill confidence in prospective investors, corporate partners, and skilled talent, which in turn accelerates startup formation, expands commercialization pipelines, and strengthens Maryland’s position as a premier regional technology hub.

On the other hand, lower scores and diminished grades carry negative implications for long-term economic growth. When the index drops toward C ratings or lower, it signals potential headwinds such as reduced research and development expenditure, sluggish patent filing rates, or tightened venture financing. Prolonged periods of depressed scores can erode market confidence, slow the transition of academic research into market-ready products, and cause capital to migrate toward more active geographic markets.

Discussion:

In September, the Maryland inventionINDEX scored a positive sentiment which was lower than the previous year’s average but 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.