MARYLAND INVENTION INDEX – MARCH 2025
The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth.
Maryland Invention Index March 2025: 1.04% (C grade)
Maryland Invention Index over the last year:
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 Invention Index – Last 6 Months
| Month | Invention Index Score |
|---|---|
| March 2025 | 1.04% |
| February 2025 | 1.25% |
| January 2025 | 1.24% |
| December 2024 | 1.31% |
| November 2024 | 1.17% |
| October 2024 | 1.39% |
Analysis
Comparison with Previous Months:
March 2025’s Invention Index score of 1.04% marks a notable decline from February’s 1.25% and January’s 1.24%. This is a drop of 0.21 percentage points from the previous month and represents the lowest score in the six-month period. February and January were relatively stable, with only a minor 0.01% decrease. The largest monthly decrease occurred between October and November 2024, when the score dropped from 1.39% to 1.17% (a 0.22-point fall).
Long-Term Trends:
Over the six-month span from October 2024 to March 2025, the overall trend is downward. Maryland’s Index fell from a high of 1.39% in October to 1.04% in March. The decline has not been entirely consistent, with a temporary rebound in December (1.31%) following November’s drop. Still, the general pattern indicates decreasing innovation activity.
Significant Changes:
Two sharp decreases stand out: October to November 2024 (-0.22%) and February to March 2025 (-0.21%). Both suggest substantial reductions in invention output or activity. December’s temporary recovery (1.31%) appears as an outlier rather than the start of a recovery trend.
Contextualizing the Data:
March 2025’s score of 1.04% appears to continue the downward trend seen since October 2024, rather than being a short-term dip. Given the ongoing month-over-month declines in four of the last five months, this suggests a sustained weakening in Maryland’s invention activity.
Discussion:
In March, the Maryland Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.
Learn more about the Invention Index here.
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 contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
Who We Are:
Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.
Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.
