South Carolina inventionINDEX September 2026: 1.45% (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).

Historical South Carolina inventionINDEX Scores

The South Carolina inventionINDEX score for the past 12 months is shown in the table below.

The South Carolina inventionINDEX for September 2026 recorded a score of 1.45% with a B+ rating, reflecting a balanced performance that sits slightly above the overall five-year historical average of 1.42%. While this represents a modest step down from August 2026, which posted a strong 1.65% score and an A rating, it demonstrates a clear rebound over July 2026, which registered 1.32% with a B rating. Over the most recent twelve-month cycle, the index has averaged approximately 1.45%, indicating that the September figure is closely aligned with current mid-term performance trends rather than an unexpected decline or isolated spike.

When evaluated across the broader sixty-month dataset, the September 2026 score positions South Carolina in a reliable middle-to-upper performance corridor. The historical baseline displays noticeable variance over time, reaching a peak in September 2025 at 1.93% with an A+ rating and dropping to a low in July 2022 at 1.06% with a C rating. The data highlights recurring surge periods—such as early-to-mid 2025 and spring 2026 where ratings regularly achieved A+ status—punctuated by occasional troughs in the C and C+ range. The current 1.45% metric demonstrates that the state maintains solid innovative activity without drifting toward past structural lows.

Achieving higher scores and top-tier ratings like A or A+ yields significant economic and strategic advantages for South Carolina. Elevated metrics indicate robust intellectual property generation, expanded research and development expenditures, and active commercialization across key industrial and technological sectors. High grades serve as a strong market signal to venture capitalists and institutional investors, helping attract corporate investment, expand technology incubators, and generate specialized, high-wage employment opportunities throughout the state.

Conversely, lower scores and degraded ratings bring notable drawbacks and operational vulnerabilities. Slipping into C or B- territory frequently points to underlying bottlenecks in technology transfer, reduced research funding, or macroeconomic headwinds constraining startup activity. Prolonged exposure to lower ratings can weaken investor confidence, reduce regional competitiveness against neighboring innovation hubs, and lead to talent attrition, underscoring the necessity of persistent capital investment and targeted policy support to sustain upward momentum.

Discussion:

In September, the South Carolina inventionINDEX scored a positive sentiment which was higher than the previous year’s average but 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.