Maryland Ranked 1st for Innovation Environment
Personal finance website, WalletHub, has ranked Maryland 1st in the country for its Innovation Environment.
The 12 Innovation Environment indicators were:
- Share of technology companies
- R&D spending per capita
- Ratio of total R&D performed to state GDP
- Invention patents per capita
- Entrepreneurial activity
- Industry-cluster strength
- Drone-friendly laws
- Average Internet speed
- Share of households with Internet access
- Venture-capital funding per capita
- Average annual federal small-business funding per GDP
Overall, Maryland was ranked the second most innovative state in the US with a ranking of 69.82 on a 100 point scale, just behind its neighbour, the District of Columbia with a ranking of 70.87.
Ranked 2nd overall in the Human Capital category, Maryland came 2nd for its share of science and engineering graduates. It placed 3rd for its share of STEM professionals and projected STEM-Job demand by 2020.
Other states that ranked well were Massachusetts, California and Colorado. Conversely, the least innovative states included West Virginia, Mississippi and Louisiana.
What Makes Maryland So Innovative?
Innovation is fostered by sustained investment in R&D, education and business creation and the development of a strong collaborative attitude. For instance, the University of Maryland plans to open an innovation center this summer to encourage entrepreneurial activities on campus and to encourage all of the University System of Maryland schools to work together.
International projects such as the Maryland International Incubator (MI2) have even greater potential. The MI2 aims to connect Maryland with global organisations, to produce successful joint ventures using world-class resources. This increases commercial activity and provides cultural learning opportunities for students.
Maryland R&D Tax Credits
Innovative businesses in any industry can apply for the Basic and Growth R&D tax credit in Maryland. To be eligible, the company must incur qualified research and development expenses as defined by section 41(b) of the Internal Revenue Code in Maryland. This could include software development or testing of new concepts or technology. The credit is refundable, allowing it to be reinvested into the business. The application deadline is September 15 of the following the tax year in which the expenses were incurred.
To find out whether your company is eligible to apply for the R&D tax credit, please contact Swanson Reed R&D Tax Specialists.