SOUTH CAROLINA INVENTIONINDEX | SEPTEMBER 2025

September 2025: 1.93% (A+ grade)

South Carolina inventionINDEX September 2025: 1.93% (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 for September 2025 stands at 1.93%, earning an A+ grade. This score indicates a strong performance in innovation output, particularly when viewed against the backdrop of the previous 60 months. Historically, scores in this range, and particularly those achieving an A+ rating, signify periods where GDP growth is effectively outpacing patent production growth, suggesting a robust and dynamic economic environment within the state. Such elevated scores often correlate with increased investment in research and development, fostering a climate conducive to technological advancements and economic diversification.

A higher inventionINDEX grade, such as the A+ achieved in September 2025, generally brings about several positive outcomes. It reflects a healthy innovation ecosystem that can attract new businesses, stimulate job creation, and enhance the state’s competitive edge. A sustained period of high scores can lead to greater economic resilience, allowing the state to navigate economic shifts more effectively. Furthermore, a strong innovation output can translate into improved quality of life for residents through new products, services, and industries. The ability to consistently generate and commercialize new ideas is a cornerstone of long-term economic prosperity.

Conversely, a lower inventionINDEX score or grade carries potential negative implications. A score below the C grade, for instance, indicates a negative outlook or sentiment, suggesting that innovation output is not keeping pace with economic growth. This could signal a decline in research and development activities, a lack of investment in emerging technologies, or challenges in translating innovative ideas into tangible economic benefits. Such a trend, if prolonged, could lead to a stagnation of economic growth, a decrease in competitiveness, and a potential exodus of talent and businesses seeking more innovative environments.

Examining the historical data, the September 2025 score of 1.93% is notable. While there have been fluctuations over the past 60 months, with scores ranging from a low of 1.06% (July 2022) to a high of 1.93% (September 2025 and March 2021), the current A+ rating positions South Carolina favorably. This performance suggests a potential for continued economic recovery and growth, provided that the underlying factors contributing to this innovation output are sustained and further nurtured. The ability to maintain and build upon such positive momentum will be crucial for the state’s future economic trajectory.

Discussion:

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