HAWAII INVENTIONINDEX | JUNE 2025
June 2025: 1.17% (C+ grade)
Hawaii inventionINDEX June 2025: 1.17% (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).
The June 2025 inventionINDEX score for Hawaii is 1.17%. This marks a slight decline from May’s 1.51% and matches the scores seen in March and January. Although the figure is stable, the lack of upward movement may indicate limited recent momentum. In contrast, it is still an improvement over some earlier lows.
Compared to February’s 0.67%, June’s score shows progress. This rebound reflects a recovery in patent activity after a weak winter period. However, the current level is well below the peak of 3.03% recorded in July 2024. That spike was likely driven by a short-term surge, not a long-term trend.
Higher inventionINDEX scores are usually linked to strong R&D output. They often signal that local researchers and companies are effectively turning ideas into patents. This can attract investment, build credibility, and support the development of a tech-based economy. It also opens up more opportunities for partnerships and growth.
On the other hand, lower scores may point to emerging issues. These could include reduced funding, slowdowns in research, or delays in patent processing. If such trends continue, they could hurt Hawaii’s reputation as a center for innovation. For that reason, close monitoring and timely intervention are essential to support continued progress.
Discussion:
In June, the Hawaii inventionINDEX scored a positive sentiment which was lower than the previous year’s average but 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 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.
