SOUTH CAROLINA INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.52% (A- grade)

South Carolina inventionINDEX November 2025: 1.52% (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 South Carolina inventionINDEX serves as a vital barometer for the state’s innovation health, measuring the relationship between patent production and gross domestic product growth. Over the last 60 months, the index has demonstrated a dynamic range of performance, with the most recent score of 1.52% in November 2025 earning an A- rating. This reflects a significant recovery from the 1.08% dip seen in October 2025, which was the lowest score in several years. Looking back at the five-year trajectory, the state reached its historical peak of 1.93% in September 2025, marking a period of exceptional patent activity relative to economic output.

A higher grade on the inventionINDEX, particularly the A+ ratings achieved in months like September 2025 (1.93%) and March 2021 (1.84%), signals a robust and fertile environment for research and development. These peaks suggest that South Carolina’s businesses and academic institutions are successfully converting economic resources into protected intellectual property. High scores often correlate with increased investor confidence, as they indicate a proactive and competitive marketplace. Such positive outcomes pave the way for long-term industrial growth, attracting high-tech manufacturing and technology-based startups that provide high-wage employment opportunities for the local workforce.

Conversely, a lower score, such as the 1.06% recorded in July 2022 or the recent 1.08% in October 2025, presents a more cautious outlook. These figures, which hover near or at a C rating, imply that patent growth is struggling to keep pace with broader economic expansion. This stagnation can be a byproduct of reduced research funding, labor shortages in specialized STEM fields, or a temporary lag in the processing of innovation pipelines. If lower scores persist, they may signal a decline in the state’s future competitive edge, potentially leading to a slower recovery from economic shifts or a reduction in the state’s appeal as a hub for advanced manufacturing.

Analyzing the 60-month data set reveals that while the index experiences periodic volatility, it generally maintains a positive sentiment above the C threshold. The frequent appearance of B+ and A- ratings throughout 2024 and 2025 suggests a resilient innovation ecosystem that is capable of bouncing back from monthly fluctuations. By monitoring these shifts, policymakers and business leaders in South Carolina can better identify periods where additional support for R&D tax credits or technical education might be necessary. Maintaining an upward trend in the inventionINDEX is essential for ensuring that the Palmetto State remains a national leader in the modern, knowledge-based economy.

Discussion:

In November, the South Carolina inventionINDEX scored a positive sentiment which was lower than the previous year’s average but outperformed the downward trend for the year. This is in contrast to the prior 12 months, which experienced a slight upward 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.