NEW MEXICO INVENTION INDEX – MARCH 2025

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

New Mexico Invention Index March 2025: 1.20% (B- grade)

New Mexico 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).

Analysis:

Comparison with Previous Months:
The most recent score, March 2025 (1.20%, B-), remains unchanged from February 2025 (1.20%, B-). Both months show a decline compared to earlier months, particularly from the peak in October 2024 (1.43%, A-). The downward trend, particularly the drop in November (1.02%, C), appears to have stabilized in recent months, with no further decrease.

Long-Term Trends:
Over the six-month period, the Invention Index for New Mexico shows some fluctuation. The highest score was recorded in October 2024 (1.43%), followed by a decline in November 2024. The score seemed to stabilize between December 2024 and March 2025 at 1.20% to 1.32%. Overall, the trend shows a decline from the peak in October to a more stable, lower level in the subsequent months.

Significant Changes:
The sharpest change occurred between October and November 2024, where the score dropped significantly from 1.43% (A-) to 1.02% (C). This indicates a notable decrease, but without further data on the cause, it’s difficult to explain the drop with certainty.

Contextualizing the Data:
The March 2025 score of 1.20% (B-) aligns with the recent pattern, showing a stable but low level compared to the peak in October 2024. The current score does not suggest a temporary fluctuation, but rather a new, consistent trend at this lower level.

Discussion:

In March, the New Mexico Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a slight downward 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.

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