April 2026: 0.88% (D+ grade)
New Mexico inventionINDEX April 2026: 0.88% (D+ 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).
New Mexico inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 0.88% |
| Mar 26 | 1.35% |
| Feb 26 | 1.14% |
| Jan 26 | 0.91% |
| Dec 25 | 1.32% |
| Nov 25 | 1.00% |
| Oct 25 | 1.40% |
| Sep 25 | 1.69% |
| Aug 25 | 7.81% |
| Jul 25 | 1.32% |
| Jun 25 | 1.00% |
| May 25 | 1.37% |
| Apr 25 | 1.35% |
The April 2026 inventionINDEX score for New Mexico stands at 0.88 percent with a D+ rating, representing a notable contraction in the state’s innovation metrics. This current figure marks a significant departure from the momentum established in March 2026, when the index reached 1.35 percent with a B+ rating. When compared to the performance over the last quarter, the April results suggest a sharp cooling of inventive activity, effectively negating the moderate recovery observed throughout the start of the year. This score is particularly concerning as it approaches the historical floor of 0.73 percent seen in March 2023, indicating that the state is currently operating well below its average capacity for intellectual property development.
Looking at the broader sixty-month historical context, New Mexico has demonstrated a capacity for extraordinary surges, most notably the 7.81 percent A+ rating recorded in August 2025. While that peak was an exceptional outlier, the state has historically maintained a more consistent baseline in the 1.10 percent to 1.60 percent range, frequently securing A and B ratings throughout 2022 and 2024. The current slide to 0.88 percent is a stark contrast to the robust activity seen as recently as late 2025. This volatility highlights a shift from a period of high-output stability to a more defensive stance in the regional technology and research sectors.
A higher grade on the inventionINDEX, such as the A+ ratings achieved intermittently over the last five years, yields substantial economic and reputational dividends for the state. High scores typically reflect a surge in patent applications, increased activity within research institutions, and a flourishing environment for tech startups. These periods of high performance signal to global investors and venture capitalists that New Mexico is a primary hub for cutting-edge development. Furthermore, a strong index rating often correlates with an influx of federal and private grants, fostering a self-sustaining cycle of high-wage job creation and industrial modernization.
Conversely, the negative implications of a lower score and a D+ rating involve more than just a temporary statistical dip. A sustained low index suggests a bottleneck in the pipeline from ideation to commercialization, which can lead to a loss of competitive advantage against other innovative regions. Low ratings can discourage new talent from entering the local market and may cause existing firms to look elsewhere for more dynamic research ecosystems. If the score does not rebound toward the historical median, the state risks a period of technological stagnation that could impact long-term economic resilience and the vitality of its specialized labor force.
Discussion:
In April, the New Mexico inventionINDEX scored a negative 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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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