July 2025: 1.21% (B grade)

Maine inventionINDEX July 2025: 1.21% (B 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).

Maine inventionINDEX Scores – Last 12 months

Based on the historical data for the last 60 months, the Maine inventionINDEX has experienced significant fluctuations, with recent scores showing a mixed but generally upward trend. The most recent score of 1.21% in July 2025, which corresponds to a B rating, represents a notable rebound from the lower scores earlier in the year, particularly the D- rating of 0.76% in June. This pattern of volatility is a recurring theme throughout the five-year period, with the score frequently rising and falling between months. Overall, the recent performance indicates a return to a more positive innovation environment following a temporary dip.

Periods of high performance, such as the A+ ratings of 1.78% in March 2024 and 1.50% in October 2023, highlight a significant surge in the state’s innovative activity. A higher inventionINDEX score and a corresponding top-tier grade are typically associated with several positive outcomes for the economy. These include a more robust and dynamic startup ecosystem, a greater influx of venture capital and investment, and the attraction of highly skilled talent. Furthermore, a strong score suggests that businesses are actively investing in research and development, which can lead to job growth, new commercial products, and a more competitive economic landscape in the long term.

Conversely, the data reveals numerous instances of low performance, characterized by frequent F ratings, with scores at or below 0.71%. The implications of a consistently low inventionINDEX score are often unfavorable. Such a trend could signal a decline in research and development spending, a lack of new business formation, and difficulties in retaining or attracting a skilled workforce. A low score might suggest a stagnant innovative environment, which could hinder economic diversification and make the state less attractive to new industries. These periods underscore the challenges in maintaining a consistent and fertile ground for innovation.

In conclusion, the inventionINDEX for Maine presents a picture of a dynamic but inconsistent innovation ecosystem. The historical table shows that while the state is capable of achieving top-tier scores, it also frequently experiences periods of much lower performance. The analysis of these scores provides a clear correlation between a higher score and a healthy, innovative economy, while lower scores signal potential areas of concern that may require strategic attention. Future efforts to foster innovation will likely aim to stabilize the score and reduce the frequency of the low-performing periods to build a more resilient and sustained innovative economy.

Discussion:

In July, the Maine inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an 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 Maine office provides R&D tax credit consulting and advisory services to Portland, Lewiston, Bangor, South Portland and Auburn.

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.

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