HAWAII INVENTIONINDEX | APRIL 2025

April 2025: 1.34% (B grade)

Hawaii inventionINDEX April 2025: 1.34% (B 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).

Analysis of the Hawaii InventionINDEX Score:

The Hawaii inventionINDEX score for April 2025 stands at 1.34%, which shows an increase compared to the previous month (March 2025) with a score of 1.17%. This slight upward trend is indicative of steady innovation within the state. Over the last six months, the inventionINDEX fluctuated, with significant peaks such as 3.03% in July 2024. However, it also faced periods of decline, like in June 2024, when the score dropped to 0.50%.

A higher inventionINDEX score, like the one observed in July 2024 (3.03%), reflects a strong period of creativity, technological advancements, and entrepreneurial activity. It suggests a thriving environment for new inventions and innovations, attracting potential investors, businesses, and skilled professionals to the region. Additionally, a higher score can indicate that Hawaii is actively pushing the boundaries of technology and fostering a dynamic environment for invention.

On the other hand, a lower score, such as the one in June 2024 (0.50%), may signify a slowdown in innovation and invention, possibly due to economic factors, reduced investment in research and development, or fewer breakthroughs in technology. A lower score could impact the state’s competitiveness and deter new business opportunities, as innovation often plays a key role in attracting both talent and resources.

In summary, a consistent or rising inventionINDEX score is favorable for the economy and innovation ecosystem, while a drop signals the need for revitalized efforts in research, development, and business support.

Discussion:

In April, the Hawaii 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 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 at a time that is convenient for you, 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.