SOUTH CAROLINA INVENTIONINDEX | MAY 2025

May 2025: 1.15% (C+ grade)

South Carolina inventionINDEX May 2025: 1.15% (C+ 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).

The South Carolina inventionINDEX Score for May 2025 stands at 1.15%, marking a decline from April’s 1.74% and representing one of the lower values recorded in the past year. This shift indicates a slowdown in innovative activity or patent filings within the state for the most recent month. While this may appear as a short-term deviation, it is worth noting that the May 2025 figure is not only lower than April’s but also undercuts the May 2024 score of 1.52%, suggesting a year-over-year dip in inventive momentum.

Over the past twelve months, the inventionINDEX has fluctuated within a relatively narrow band, peaking at 1.74% in April 2025 and dipping as low as 1.12% in August 2024. The current score places South Carolina closer to the lower end of that range. However, the state has demonstrated intermittent bursts of innovation, such as in October 2024 (1.69%) and December 2024 (1.67%), which underscore its capacity to rebound. The lower score in May 2025 should be viewed within this broader cyclical context, though it does highlight the need to evaluate recent shifts in industry investment, research focus, or policy incentives that may be influencing the decline.

A higher inventionINDEX Score typically reflects an uptick in patent filings, intellectual property development, and research productivity. This can lead to increased funding opportunities, attract talent to the region, and support a thriving innovation economy. When the score rises, it often signals that businesses and universities are actively pushing new technologies to market, enhancing the state’s competitiveness on a national scale. It also suggests a robust infrastructure for R&D, which can be a magnet for venture capital and technology partnerships.

Conversely, a lower score may indicate waning momentum in these areas. It could point to reduced R&D investment, lower patent activity, or external challenges affecting innovation cycles, such as economic headwinds or talent shortages. If this trend persists over multiple months, it could have negative implications for South Carolina’s innovation pipeline, potentially affecting job creation and long-term economic growth. Stakeholders may need to assess whether additional support mechanisms, such as targeted grants or improved academic-industry collaboration, are necessary to reinvigorate inventive activity.

Discussion:

In May, the South Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average and 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.