SOUTH CAROLINA INVENTIONINDEX | DECEMBER 2025

December 2025: 1.26% (B- grade)

South Carolina inventionINDEX December 2025: 1.26% (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 December 2025 inventionINDEX score for South Carolina stands at 1.26 percent, resulting in a B- rating. This latest figure reflects a notable decline from the previous month’s performance of 1.52 percent and a significant drop from the 1.93 percent peak achieved in September 2025. When examining the broader sixty-one-month trajectory, the current score resides in a mid-to-lower tier, mirroring the inconsistent momentum observed throughout the five-year period. While the state has frequently touched the A-range, the recent dip to 1.26 percent suggests a period of cooling after a relatively strong third quarter in 2025.

A historical review reveals that the index has experienced considerable volatility, fluctuating between a high of 1.93 percent and a low of 1.06 percent in July 2022. The current B- rating is a recurring grade within this dataset, appearing frequently during transition periods such as late 2021 and early 2022. Comparing the current 1.26 percent to the historical average, it is evident that South Carolina is currently performing below its full potential. The state has demonstrated an ability to maintain scores above 1.70 percent for several months at a time, particularly during the first half of 2025 and late 2023, which serves as a benchmark for what the innovation ecosystem can achieve under optimal conditions.

Achieving a higher grade, such as the A+ ratings seen in September 2025 or March 2021, brings substantial positive outcomes to the state’s economic landscape. Higher scores typically indicate a surge in patent activity, increased research and development investment, and a flourishing environment for intellectual property creation. These periods of high performance foster investor confidence and attract top-tier talent to the region, positioning South Carolina as a leader in industrial and technological advancement. A strong inventionINDEX score serves as a powerful marketing tool for the state, signaling to global markets that the local economy is primed for high-growth ventures and sustainable innovation.

Conversely, a lower score or a downward trend in ratings carries negative implications for the state’s long-term competitiveness. When the index falls toward the C-range, as it did in October 2025 and July 2022, it often points to a stagnation in creative output or a bottleneck in the commercialization of new ideas. Such declines can discourage venture capital entry and may suggest that existing policies or economic incentives are failing to support the needs of modern inventors. If the score remains suppressed, there is a risk that South Carolina could lose its competitive edge to neighboring regions that are more aggressively fostering an environment conducive to intellectual and technical breakthroughs.

Discussion:

In December, the South Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average and underperformed the downward trend for the year. This is similar 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.