July 2025: 1.80% (A+ grade)

South Carolina inventionINDEX July 2025: 1.80% (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 Scores – Last 12 months

The July 2025 inventionINDEX score for South Carolina is 1.80%, earning a top rating of A+. This score represents a significant improvement from the preceding month of June 2025, which registered at 1.47%. When viewed in the context of the historical data over the last five years, this current score is notably higher than the overall average of 1.42% and the median score of 1.39%. This places the state’s recent performance among the highest recorded, indicating a period of strong innovative activity and a positive trajectory following a dip in May 2025.

A high inventionINDEX score, such as the current 1.80%, generally signals a robust and dynamic environment for innovation. High scores, exemplified by the historical maximum of 1.84%, suggest that the state is successfully fostering a culture of creativity and technological advancement. These elevated scores often attract greater venture capital, encourage the establishment of new businesses, and lead to job creation in high-growth sectors. The presence of a strong innovation ecosystem can also enhance a state’s reputation on a national and international level, making it a more attractive destination for skilled talent and forward-thinking companies.

Conversely, a lower inventionINDEX score has the potential to signal a stagnation in economic and inventive progress. Scores on the lower end of the spectrum, such as the historical minimum of 1.06%, may be indicative of a less competitive business landscape and a reduced capacity for developing new ideas and technologies. Such conditions could lead to challenges in attracting and retaining top talent, as well as a slower pace of economic growth compared to states with higher innovation scores. A sustained period of lower scores could ultimately make it more difficult for the state to adapt to changing market conditions and maintain its economic relevance.

The historical data reveals a pattern of fluctuation in the inventionINDEX score over the past 60 months, but with the recent performance in July 2025 reaching a near-peak level. While the scores have varied, with ratings ranging from C to A+, the state’s ability to achieve an A+ rating indicates its capacity for high performance. This latest score provides a strong foundation for continued growth and reinforces the importance of policies and initiatives that support a thriving and competitive innovative landscape. Maintaining this momentum will be crucial for South Carolina’s long-term economic prosperity and its position as a hub for invention.

Discussion:

In July, 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 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.

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