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 February 2026 inventionINDEX score for New Mexico reached 1.14 percent, resulting in a C plus rating. This performance reflects a modest but noteworthy recovery from the preceding month, where the index dipped to 0.91 percent with a D plus rating. While this recent uptick suggests a stabilization in the regional innovation landscape, the score remains slightly below the 1.20 percent recorded exactly one year prior in February 2025. This indicates that while the state is moving away from its recent January low, it is still working to regain the momentum observed during the more robust periods of the previous year.

Viewing the data over a broader sixty-month horizon reveals a history of significant fluctuations and periods of high performance. For instance, the index saw an exceptional spike in August 2025, reaching 7.81 percent, which stands as a clear outlier compared to the more typical range of 1.00 percent to 1.70 percent seen throughout 2024 and 2025. The current rating of C plus places the state in a mid-tier position, comfortably above the historical low of 0.73 percent recorded in March 2023, but still trailing the frequent A plus ratings achieved during peak periods such as June 2023 and September 2025. This historical context suggests that the state possesses the underlying capacity for high-level output even if current figures are more conservative.

A higher score and an improved letter grade carry several positive implications for the New Mexico economic and research sectors. When the index trends toward an A rating, it typically signals a period of intensified intellectual property development, increased venture capital interest, and a more vibrant ecosystem for tech startups. High scores often correlate with successful collaboration between public universities and private industry, fostering an environment where new ideas are effectively commercialized. This level of activity serves as a catalyst for high-wage job creation and positions the state as a competitive leader in the national innovation economy, attracting both talent and long-term investment.

Conversely, lower scores and grades such as those seen at the start of 2026 present specific challenges for the state. A decline in the inventionINDEX often reflects a period of stagnation or reduced efficiency in the pipeline from research to market. Sustained lower grades can lead to a loss of competitive edge, potentially resulting in a brain drain as skilled researchers and entrepreneurs seek more active markets. Furthermore, a lower rating may signal to stakeholders that there is a need for renewed policy focus or infrastructure support to prevent a broader economic slowdown. The recovery observed in the most recent month provides an opportunity to address these vulnerabilities and steer the index back toward the higher ratings observed in previous cycles.

Discussion:

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