June 2025: 1.47% (B+ grade)

South Carolina inventionINDEX June 2025: 1.47% (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 South Carolina inventionINDEX score for June 2025 stands at 1.47%, marking a moderate increase compared to the previous month’s 1.15%. This uptick breaks a brief two-month downward trend and brings the state closer to its more robust performance earlier in the year. Notably, the current score sits above the 12-month average of approximately 1.46%, suggesting a slight but meaningful rebound in inventive activity as the second half of the year begins.

When compared to its peak in April 2025 at 1.74%, the June figure reflects a decline of 0.27 percentage points, indicating some cooling in momentum since early spring. However, it still surpasses several past months, including August 2024 (1.12%) and July 2024 (1.39%), highlighting relative stability in recent performance. The data reveals that South Carolina’s innovation ecosystem continues to cycle between phases of acceleration and consolidation, rather than showing erratic or sharply declining behavior.

A higher inventionINDEX score, such as seen in April or December of 2024, typically correlates with increased patent filings, research breakthroughs, and overall R&D vitality. This growth can contribute to stronger regional competitiveness, attract investment, and support job creation in advanced sectors. The latest recovery to 1.47% may signal a favorable environment for startups and academic-industry collaborations that drive innovation-based economic growth.

Conversely, if the index were to dip below the 1.2% mark-as it did in August 2024 (1.12%)-it could suggest a slowdown in inventive output, potentially due to reduced funding, fewer research initiatives, or regulatory headwinds. A sustained low score might weaken the state’s position in national rankings and deter innovation-driven companies from establishing a local presence. Therefore, maintaining and improving the inventionINDEX remains a key priority for policy makers and economic development leaders in South Carolina.

Discussion:

In June, the South Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a slight 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 South Carolina office provides R&D tax credit consulting and advisory services to Columbia, Charleston, North Charleston, Mount Pleasant, Rock Hill, Greenville, Summerville, Sumter, Hilton Head Island, and Spartanburg.

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. 

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