MARYLAND INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.31% (A grade)

Maryland inventionINDEX November 2025: 1.31% (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 Scores – Last 12 months

The November 2025 inventionINDEX score of 1.31% represents a notable recovery and a return to an “A” rating for Maryland’s innovation sector. After a period of relative stagnation through the summer and early autumn of 2025, where scores fluctuated between 1.15% and 1.20%, this latest figure matches the strong performance seen in late 2024. While it does not quite reach the peak of 1.49% recorded in July 2025, the current score indicates a stabilizing trend of excellence. Over the broader sixty-month horizon, a 1.31% rating places the state comfortably above its historical median, suggesting that the ecosystem for new inventions is regaining the momentum that characterized its most productive periods in early 2021 and late 2023.

Maintaining a high grade such as the current “A” rating provides several strategic advantages for the regional economy. A robust index score typically correlates with increased venture capital interest and a higher volume of patent filings, which serves as a catalyst for long-term job creation in high-tech industries. When the score rises, it signals to stakeholders that the infrastructure for research and development is functioning efficiently, encouraging both public and private sectors to double down on their investments. This level of performance fosters an environment where academic breakthroughs can be more readily commercialized, ultimately strengthening the state’s reputation as a hub for scientific and technological advancement.

Conversely, fluctuations in the index highlight the risks associated with a loss of momentum. The historical data shows occasional dips into the “B-” and “C” ranges, most notably a significant outlier in May 2023 when the score plummeted to 0.58%. Such declines often reflect systemic bottlenecks, such as reduced funding for startups or a slowdown in the transition from prototype to market. A lower score can lead to a perception of stagnation, potentially causing top-tier talent to seek opportunities in more dynamic markets. When the rating falls below the “A” threshold, it often necessitates a reevaluation of policy incentives and support structures to prevent a more permanent decline in competitive standing.

As Maryland moves forward from its November 2025 benchmark, the focus remains on sustaining these elevated levels of innovation. The current 1.31% score serves as a vital indicator of health, suggesting that the state has successfully navigated the volatility seen in previous years. By leveraging this positive momentum, the region can better insulate itself against the economic pressures that previously caused scores to drift toward the lower “B” and “C” tiers. Consistency in these metrics is essential for long-term planning, ensuring that the innovation pipeline remains full and that the state continues to lead in the global race for technological supremacy.

Discussion:

In November, 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 a slight 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.