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 reached a notable high in March 2026 with a score of 1.71 percent, earning an A+ rating. This performance represents a robust upward trend from the beginning of the year, where the index started at a modest 1.23 percent in January and rose to 1.34 percent in February. When compared to the previous twelve months, this latest figure signals a return to peak innovation levels, closely mirroring the 1.71 percent recorded exactly one year prior in March 2025. This consistency suggests a recurring seasonal strength or a successfully implemented long-term strategy that revitalizes the state’s inventive output as it moves into the spring quarter.

Analyzing the full sixty-month trajectory reveals that while 1.71 percent is a strong showing, it remains slightly below the historical high of 1.93 percent achieved in September 2025. Throughout the five-year period, the index has demonstrated significant resilience, frequently bouncing back from low points such as the 1.06 percent recorded in July 2022 and the 1.08 percent seen as recently as October 2025. The current A+ rating distinguishes itself from the frequent B-range ratings that characterized much of 2021 and 2022, indicating that South Carolina’s innovation ecosystem has matured and is now more capable of sustaining higher levels of creative and technical productivity.

The positive outcomes of maintaining a high grade like an A+ are multi-faceted and vital for the state’s economic health. A higher score typically serves as a beacon for venture capital firms and industrial partners looking for regions with high intellectual property potential. This environment fosters a cycle of high-value job creation, as increased patent filings and research and development initiatives require a specialized workforce. Furthermore, consistent top-tier ratings bolster the state’s competitive edge, encouraging local universities and private laboratories to collaborate more effectively, which ultimately secures South Carolina’s position as a prominent leader in regional innovation and modern manufacturing.

Conversely, the negative implications of a lower score or a drop into the C-rating territory, such as the 1.08 percent seen in late 2025, can be significant. Lower ratings often reflect a period of intellectual stagnation or a lack of institutional support for emerging technologies, which can lead to a loss of momentum in critical industries. Such declines may cause a migration of talent to more active innovation hubs, resulting in a brain drain that hampers long-term progress. Additionally, a lower index score can deter potential investors who view the region as less hospitable to new ideas, emphasizing the importance of stabilizing the index to prevent the economic friction associated with industrial and creative slowdowns.

Discussion:

In March, the South Carolina inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced an upward 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.