SOUTH CAROLINA INVENTIONINDEX | OCTOBER 2025
October 2025: 1.08% (C grade)
South Carolina inventionINDEX October 2025: 1.08% (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).
South Carolina inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| October 2025 | 1.08% |
| Sep 25 | 1.93% |
| Aug 25 | 1.41% |
| Jul 25 | 1.80% |
| Jun 25 | 1.47% |
| May 25 | 1.15% |
| Apr 25 | 1.74% |
| Mar 25 | 1.71% |
| Feb 25 | 1.36% |
| Jan 25 | 1.63% |
| Dec 24 | 1.67% |
| Nov 24 | 1.32% |
| Oct 24 | 1.69% |
The South Carolina inventionINDEX for October 2025 stands at 1.08%, earning a C grade. This score is notably lower than the previous month’s 1.93% (A+) and also falls below the average performance observed over the past year. While still considered a positive sentiment, this recent dip suggests a potential deceleration in innovation output when compared to the more robust figures seen earlier in 2025 and throughout much of 2024. The trend for the prior 12 months had shown a slight downward trajectory, and the current October figures continue this pattern, underperforming the overall upward trend for the year.
A higher inventionINDEX score and a corresponding higher grade, such as an A+ or A, signify a strong and healthy innovation ecosystem. This typically indicates robust GDP growth coupled with significant patent production, which are key indicators of economic vitality and future potential. Such positive sentiments suggest that the state is effectively fostering an environment conducive to research, development, and the commercialization of new ideas. This can lead to increased investment, job creation, and a more resilient economy, better positioned to navigate economic fluctuations and capitalize on emerging opportunities.
Conversely, a lower inventionINDEX score, like the current C grade, implies a more subdued level of innovation output. While a C grade still represents a positive sentiment, a consistent decline or a score significantly below historical averages could signal underlying challenges. These might include a slowdown in research and development activities, reduced patent filings, or a less dynamic economic landscape. Such trends, if sustained, could potentially hinder long-term economic recovery and growth, making the state more vulnerable to economic downturns and less competitive in attracting innovative industries.
The current October 2025 score, while positive, prompts a closer examination of the factors influencing South Carolina’s innovation performance. The discussion within the provided document highlights uncertainties regarding the backlog of patent applications and the potential lingering effects of the pandemic on company operations, workforce, and R&D capabilities. Understanding these contributing factors will be crucial for policymakers and businesses to implement targeted strategies that can reignite innovation and ensure sustained economic progress for the state.
Discussion:
In October, 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.
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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.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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