April 2026: 1.85% (A+ grade)
Hawaii inventionINDEX April 2026: 1.85% (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).
Hawaii inventionINDEX Scores – Last 12 months
| Month | inventionINDEX Score |
| April 2026 | 1.85% |
| Mar 26 | 1.85% |
| Feb 26 | 0.84% |
| Jan 26 | 1.85% |
| Dec 25 | 1.01% |
| Nov 25 | 1.34% |
| Oct 25 | 1.17% |
| Sep 25 | 1.85% |
| Aug 25 | 0.84% |
| Jul 25 | 1.51% |
| Jun 25 | 1.17% |
| May 25 | 1.51% |
| Apr 25 | 1.34% |
The Hawaii inventionINDEX concludes April 2026 at a robust 1.85 percent, earning an A+ rating that maintains the strong momentum established at the start of the year. This score matches the performance seen in both March and January of 2026, signaling a return to a high-level equilibrium after a notable dip in February when the index dropped to 0.84 percent. By sustaining this elevated position, the state demonstrates a capacity for quick recovery and a renewed focus on high-value intellectual output within its innovation ecosystem.
Reflecting on the historical data from the last five years, the index has navigated a path defined by significant variance. The state reached a remarkable zenith in July 2024 with a score of 3.03 percent, which remains the highest point in the recorded period. However, this peak followed the index’s lowest recorded point just one month earlier in June 2024, when the score plummeted to 0.50 percent. Such volatility highlights a dynamic environment where rapid shifts in research funding, patent approvals, or industry focus can dramatically alter the state’s comparative standing in the national landscape.
A high inventionINDEX score serves as a critical catalyst for economic prosperity and regional prestige. When the rating reaches the A+ tier, it signals to institutional investors and corporate leaders that Hawaii possesses a fertile environment for technological breakthroughs and entrepreneurial ventures. These favorable metrics often lead to increased investment in local startups, the expansion of research facilities, and a general strengthening of the state’s brand as a destination for forward-thinking professionals. This prestige helps build a sustainable foundation for future growth by fostering a culture where new ideas are both generated and successfully brought to market.
On the other hand, sustained lower scores or frequent drops into the D and F categories present substantial challenges for the local economy. Lower grades can indicate structural weaknesses, such as a lack of diverse research initiatives or difficulties in transitioning theoretical concepts into commercial applications. If the index remains low for extended periods, there is a heightened risk of brain drain, as specialized talent may seek opportunities in regions with more consistent innovation output. Addressing the root causes of these periodic declines is essential for ensuring that the state avoids stagnation and maintains its status as a competitive player in the global technology sector.
Discussion:
In April, the Hawaii 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 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 Hawaii office provides R&D tax credit consulting and advisory services to Honolulu, East Honolulu, Pearl City, Hilo and Kailua.
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.
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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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