SOUTH CAROLINA INVENTIONINDEX | APRIL 2025

April 2025: 1.74% (A+ grade)

South Carolina inventionINDEX April 2025: 1.74% (A+ 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: Six-Month Performance Analysis

Over the past six months, South Carolina’s inventionINDEX has demonstrated a generally positive trajectory, rising from 1.32% in November 2024 to a peak of 1.74% in April 2025. This 0.42 percentage point increase signals growing momentum in innovation and intellectual property development. Notably, April and March 2025 marked the highest scores in the observed period, suggesting recent advancements in research funding, patent output, or R&D employment.

A higher inventionINDEX score typically reflects a favorable environment for innovation, with increased investment in technology, education, and start-up ecosystems. Such trends can attract high-tech businesses, improve workforce quality, and boost economic diversification. For South Carolina, surpassing the 1.7% mark positions the state as a competitive player nationally in fostering technological progress and invention.

However, dips such as the 1.36% score in February 2025 and 1.32% in November 2024 highlight potential volatility. A lower score could indicate reduced patent filings, diminished R&D investment, or challenges in technology transfer from institutions to industry. These declines can impact job creation and long-term economic resilience if not addressed.

Overall, South Carolina’s recent six-month performance in the inventionINDEX shows promising upward movement, with caution warranted around maintaining momentum and mitigating dips that could undercut innovation-driven growth.

Discussion:

In April, the South Carolina inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed 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 at a time that is convenient for you, 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.