SOUTH CAROLINA INVENTIONINDEX | AUGUST 2025

August 2025: 1.41% (B+ grade)

South Carolina inventionINDEX August 2025: 1.41% (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).

South Carolina inventionINDEX Scores – Last 12 months

The South Carolina inventionINDEX for August 2025 stands at 1.41%, earning a B+ rating. This score, while indicating positive sentiment for innovation output, represents a decrease from the prior month’s A+ rating of 1.80% in July 2025. When viewed in the context of the last 12 months, the current score is generally consistent with the average, though it shows a slight dip compared to some of the higher-performing months within that period, such as April and March 2025. This suggests a stable, yet not exceptionally accelerating, innovation environment.

A higher inventionINDEX score and corresponding higher grade (e.g., A or A+) signify a robust and expanding innovation ecosystem. This typically correlates with stronger economic growth, as increased patent production, when aligned with GDP growth, indicates a productive and inventive business landscape. Such positive trends attract further investment, foster job creation, and can lead to a more competitive and resilient economy. A consistently high score suggests an environment conducive to research and development, technological advancement, and a flourishing entrepreneurial spirit, all of which contribute to long-term prosperity.

A lower inventionINDEX score and a lower grade (e.g., C or below) suggest a deceleration or stagnation in innovation output. This could be indicative of various challenges, such as reduced investment in R\&D, a less favorable environment for new ideas, or a decline in economic dynamism. The negative implications of a sustained lower score include a potential slowdown in economic recovery, reduced competitiveness in key industries, and a less attractive climate for businesses seeking to innovate. This can ultimately hinder job growth and overall economic health.

Analyzing the historical data, it is evident that South Carolina has experienced fluctuations in its inventionINDEX over the past 60 months. While periods of strong performance with A and A+ ratings are present, there are also instances of C and C+ ratings, indicating moments of less robust innovation. Understanding these trends and the factors influencing them is crucial for policymakers and businesses alike to cultivate an environment that consistently supports and incentivizes innovation, thereby fostering a stronger and more resilient economic future for South Carolina.

Discussion:

In August, 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. 

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.