MARYLAND INVENTIONINDEX | APRIL 2025

April 2025: 1.42% (A+ grade)

Maryland inventionINDEX April 2025: 1.42% (A+ 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).

Maryland inventionINDEX: 6-Month Performance Analysis

The inventionINDEX score for Maryland has shown a noticeable upward trend in the past six months, peaking in April 2025 at 1.42%, the highest value over the one-year span. This is a significant improvement from November 2024, when the index was at 1.17%. The average score over this period is approximately 1.24%, suggesting an overall positive momentum in innovation-related activity in the state.

Higher inventionINDEX scores typically signal increased patent filings, entrepreneurial efforts, and investment in R&D. Maryland’s upward trend can indicate a strengthening innovation ecosystem, potentially leading to job creation, higher economic output, and increased competitiveness in sectors such as biotech, cybersecurity, and advanced manufacturing. The jump from March to April alone (0.38 percentage points) may reflect successful initiatives by local institutions and government innovation programs.

However, the dip in March 2025 to 1.04%, the lowest in the 6-month window, illustrates volatility in innovation output. This may stem from delayed patent approvals, reduced venture funding, or seasonal fluctuations. Prolonged low scores could signal weakening infrastructure or limited access to resources, risking brain drain or diminished national standing in high-tech development.

Overall, the recent spike suggests resilience and growth in Maryland’s innovation landscape. If this momentum is sustained, it may attract further capital and talent, solidifying the state’s position as a regional innovation leader.

Discussion:

In April, the Maryland inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast 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 Maryland office provides R&D tax credit consulting and advisory services to Baltimore, Frederick, Rockville, Gaithersburg, Bowie, Hagerstown, Annapolis, College Park, Salisbury and Laurel.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, 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.