NEW MEXICO INVENTIONINDEX | MAY 2025
May 2025: 1.37% (B+ grade)
New Mexico inventionINDEX May 2025: 1.37% (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).
Over the past twelve months, the New Mexico inventionINDEX has exhibited noticeable fluctuations, reflecting the state’s evolving innovation landscape. As of May 2025, the score stands at 1.37%, marking a slight increase from April’s 1.35%. This modest uptick suggests a stabilizing trend following a notable dip in March and February, when the score held steady at 1.20%. The overall trajectory indicates a recovering momentum in inventive activity, particularly when compared to the score from November 2024, which dipped to 1.02%, the lowest point in the year.
Examining the broader trend, the inventionINDEX peaked at 1.69% in July 2024, followed by a gradual descent through late summer and fall. This decline was likely influenced by seasonal economic factors or temporary slowdowns in research funding and patent filings. However, the January 2025 rebound to 1.61% points to a reinvigoration of the innovation environment, potentially driven by new policy initiatives or increased private sector involvement in R&D. While the score has yet to return to July’s high, the current level is above the 12-month average, which reflects a generally positive direction.
A higher inventionINDEX score is often associated with increased patent filings, greater technological advancements, and a more robust entrepreneurial climate. For New Mexico, this can translate into expanded job opportunities, attraction of venture capital, and a stronger position in competitive markets. Institutions and startups alike benefit from this surge, as it demonstrates both activity and confidence in the region’s capacity to produce novel and valuable intellectual property.
Conversely, if the score trends downward, as seen in late 2024, there may be broader implications for the state’s innovation economy. A consistently lower index could signal reduced investment in STEM fields, slowing commercialization of research, and a potential talent drain as inventors and entrepreneurs seek more fertile ground elsewhere. For policymakers and business leaders, such signals are crucial, prompting timely interventions to support infrastructure, education, and incentives that keep New Mexico’s inventive output on an upward path.
Discussion:
In May, the New Mexico inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is similar to the prior 12 months, which experienced a downward 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 New Mexico office provides R&D tax credit consulting and advisory services to Albuquerque, Las Cruces, Rio Rancho, Santa Fe, and Roswell.
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:
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