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 New Mexico inventionINDEX for March 2026 has reached a solid 1.35 percent, earning a B+ rating. This performance represents a significant recovery from the sluggish start of the year, where January dipped to a D+ rating at 0.91 percent. When compared to the broader 60-month history, the current score aligns well with the state’s historical baseline, which typically fluctuates between 1.00 percent and 1.60 percent. While the current figure is a notable improvement over the February 2026 score of 1.14 percent, it remains a conservative figure when contrasted with the monumental peak of 7.81 percent recorded in August 2025.

Maintaining a higher grade, particularly those in the A and B+ categories, yields substantial benefits for the regional economy. High inventionINDEX scores typically reflect a surge in patent filings, robust research and development activity, and a healthy influx of venture capital. For a state like New Mexico, which hosts major federal laboratories and research institutions, these elevated scores suggest that local innovations are successfully transitioning from the lab to the marketplace. A higher grade serves as a signal to investors that the state possesses a fertile environment for technological growth, which in turn fosters high-value job creation and attracts top-tier scientific talent to the region.

On the other hand, a drop in the index, such as the 0.73 percent (D-) seen in March 2023 or the 0.91 percent (D+) in early 2026, carries troubling implications. Lower scores often indicate a stagnation in the intellectual property pipeline or a lack of available funding for new startups. These periods of low performance can lead to a loss of competitive advantage relative to neighboring states, potentially resulting in a “brain drain” where local innovators relocate to more supportive ecosystems. Furthermore, sustained low ratings can discourage private sector engagement, making it more difficult for the state to diversify its economy beyond traditional sectors and increasing its vulnerability to national economic shifts.

In summary, the New Mexico inventionINDEX shows a narrative of resilience characterized by occasional bursts of extreme activity. The current B+ rating suggests that the state has successfully navigated the volatility of the past year and is returning to a trajectory of growth. While the 1.35 percent score does not match the historical highs of 2023 or the outlier performance of late 2025, it provides a stable foundation for the second quarter of 2026. Consistent performance at this level is essential for ensuring that the state remains a recognized hub for innovation and continues to leverage its unique research assets for long-term economic prosperity.

Discussion:

In March, 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.