New Mexico inventionINDEX September 2026: 0.85% (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).

Historical New Mexico inventionINDEX Scores

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

The September 2026 New Mexico inventionINDEX registered at 0.85% with a D+ rating, reflecting a contraction compared to August 2026, which posted a 1.00% score and a C- rating. This score represents a modest rebound from July 2026’s multi-year low of 0.76% (D-), yet it remains situated near the lower bound of the historical distribution. Throughout 2026, the index has struggled to sustain upward momentum, fluctuating predominantly within the D and C rating brackets, with March 2026 standing out as a rare exception at 1.35% (B+). Compared to the performance observed in late 2025, recent figures reflect a notable cooling period in regional innovation output.

Examining the broader 60-month dataset highlights a pronounced contrast between current figures and earlier peak cycles. Across the entire recorded timeline, the historical mean score stands at approximately 1.38%, anchored by strong expansionary periods such as August 2025 at 7.81% (A+), June 2023 at 2.57% (A+), and August 2023 at 1.93% (A+). In comparison, the trailing twelve-month average from October 2025 to September 2026 has slowed to approximately 1.07%. Whereas prior years consistently produced top-tier A-range ratings, including 1.69% in September 2025 and July 2024, the trajectory over the past year demonstrates sustained consolidation beneath historic norms.

Achieving a higher inventionINDEX grade delivers substantial economic and strategic advantages to New Mexico’s technological ecosystem. Scores elevated into the A and B ranges signify active intellectual property development, healthy venture capital activity, and effective technology transfer from local research institutions. High ratings enhance investor confidence, attract out-of-state capital, and encourage strategic industry-academic partnerships. Furthermore, strong performance fosters high-tech job creation, helps retain top-tier scientific talent, and positions the state as an increasingly competitive hub for national research and development.

Conversely, persistent periods of lower scores, such as the recent 0.85% D+ mark, carry negative implications for long-term regional competitiveness. Lower grades indicate potential bottlenecks in patent filings, a constrained funding environment for early-stage startups, or temporary lulls in institutional innovation output. Prolonged underperformance risks dampening private investor interest and accelerating talent emigration to higher-growth tech corridors. Reversing these lower trends calls for focused policy support, expanded seed funding programs, and deepened integration between state laboratories, universities, and commercial enterprise.

Discussion:

In September, 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 in contrast to the prior 12 months, which experienced a considerable upward 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.