June 2026: 1.00% (C- grade)

New Mexico inventionINDEX June 2026: 1.00% (C- 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 New Mexico inventionINDEX Scores

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

The New Mexico inventionINDEX registered a score of 1.00% with a rating of C- in June 2026, reflecting a period of relative moderation when contrasted against its historical performance. While this latest figure shows a slight recovery from the lower threshold of 0.88% observed in April 2026, it represents a decline from the 1.14% recorded in May 2026. Over the last 60 months, the index has experienced notable shifts, and the current standing indicates that regional innovation metrics are performing below their historical average. This current stabilization at a C- rating emphasizes the need to closely analyze the factors driving these cyclical movements within the local economic and creative landscape.

Examining the broader historical dataset reveals that the June 2026 score sits comfortably above the five-year low of 0.73% recorded in March 2023, yet it remains significantly below the historical mean of approximately 1.40% and the median of 1.29%. The index achieved an extraordinary historical peak in August 2025, reaching 7.81% with an A+ rating, which stands out as a major outlier in an otherwise steady distribution. Aside from that exceptional surge, the index has frequently oscillated between the 1.00% and 1.70% range, with stronger periods such as January 2025 at 1.61% and July 2024 at 1.69% showcasing past heights of regional productivity. The current score of 1.00% demonstrates that while the state is not at its absolute lowest nadir, it is facing a prolonged cooling period compared to the robust activity seen in previous years.

When the inventionINDEX achieves a higher grade, such as the A+ ratings observed periodically throughout the last 60 months, it yields substantial positive economic and structural outcomes for the region. A higher score typically signals a flourishing ecosystem for intellectual property, robust research and development activity, and a surge in entrepreneurial momentum. These elevated ratings can attract external venture capital, inspire corporate investments, and foster collaborations between academic institutions and private enterprises. Furthermore, a strong index enhances the reputation of New Mexico as a competitive hub for technological advancement, which helps retain local talent and draw skilled professionals from across the country.

Conversely, a lower score and grade carry negative implications that warrant careful strategic consideration. The current C- rating and recent dips into the D range suggest potential friction points within the innovation pipeline, such as reduced funding for early-stage concepts, diminished patent filings, or broader economic headwinds affecting research initiatives. Prolonged periods of lower scores can lead to a stagnation of competitive advantages, making it more challenging for the state to diversify its economy and generate high-value employment opportunities. Recognizing these implications allows stakeholders to identify areas requiring targeted support, policy adjustments, or infrastructure investments to revitalize the regional creative output.

Discussion:

In June, the New Mexico inventionINDEX scored a negative 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 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.