MARYLAND INVENTIONINDEX | MAY 2025

May 2025: 1.20% (B+ grade)

Maryland inventionINDEX May 2025: 1.20% (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).

The Maryland inventionINDEX Score for May 2025 registered at 1.20%, showing a modest rise from the previous month’s figure of 1.04% in March 2025. This increase suggests a rebound in inventive activity following a slight downturn. Over the last 12 months, the score has generally fluctuated within a narrow range, staying between 1.04% and 1.42%. The latest figure places the state’s innovation level slightly above its annual average, indicating that local inventors and institutions may be gaining renewed momentum as the mid-year approaches.

This uptick is encouraging for stakeholders across Maryland’s innovation ecosystem. A higher inventionINDEX score often reflects increased patent filings, more robust R&D investment, and heightened technological engagement in academic and private sectors. Businesses and research institutions may benefit from enhanced intellectual property output, which can lead to stronger market positioning and improved funding opportunities. Additionally, a consistently upward trend supports workforce development and signals a healthy pipeline of novel ideas transitioning into viable technologies.

However, when the score dips—as it did in March 2025—it can signal a temporary slowdown in inventive activity. Such declines, if sustained, may point to reduced investment in innovation or challenges within key sectors like biotechnology, cybersecurity, or clean energy. A lower score could also dampen investor confidence and reduce Maryland’s competitiveness in attracting national or global innovation partnerships. While short-term fluctuations are not uncommon, they merit attention when evaluating long-term strategic planning.

Comparatively, the current score is closely aligned with values from earlier in the year, such as February (1.25%) and January (1.24%), suggesting a return to a more stable trajectory after March’s lower result. This consistency may indicate that recent policy efforts or funding initiatives are starting to pay off. Monitoring how these numbers evolve into the summer months will be critical for determining whether Maryland can sustain and build upon this positive momentum in innovation leadership.

Discussion:

In May, the Maryland inventionINDEX 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 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 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.