HAWAII INVENTIONINDEX | MAY 2025
May 2025: 1.51% (A- grade)
Hawaii inventionINDEX May 2025: 1.51% (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).
The Hawaii inventionINDEX Score for May 2025 stands at 1.51%, representing a noticeable uptick compared to the preceding month’s 1.34% in April. This upward movement reflects a modest but encouraging recovery in innovation activity across the state. While not the highest point seen over the past 12 months, it marks a rebound from the February 2025 low of 0.67%, suggesting renewed momentum in intellectual property generation or inventive activity. The May 2025 figure is also significantly higher than the same month last year, which recorded a score of 0.84%, indicating a longer-term trend of gradual improvement.
When placed within the broader context of the last 12 months, May 2025’s score ranks in the upper-middle tier. The standout month during this period was July 2024, which peaked at 3.03%, an anomaly likely driven by a concentrated burst of innovation or a temporary influx of filings. In contrast, months like June 2024 (0.50%) and February 2025 (0.67%) underline periods of stagnation or decreased inventive activity. The current score, while not matching peak levels, provides a degree of stability and suggests that Hawaii’s innovation pipeline is not only active but resilient.
Higher inventionINDEX Scores such as the one observed in May 2025 are typically associated with a healthy R&D climate, strong patent output, and robust support for innovation ecosystems. This can lead to enhanced economic development, greater visibility for Hawaii-based inventors, and increased investor interest in regional tech initiatives. A consistent or rising score also signals to policymakers that innovation policy and funding efforts may be having a tangible impact.
On the other hand, should the inventionINDEX begin to decline, the implications could be more concerning. Lower scores often suggest a cooling of innovation activity, which might reflect broader economic pressures, reduced research funding, or challenges in commercialization. Over time, sustained declines could lead to talent flight, diminished competitiveness, and lost opportunities for economic diversification. Monitoring the index closely allows stakeholders to adapt strategies, ensuring Hawaii maintains its trajectory as an emerging hub for inventive progress.
Discussion:
In May, 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 if you would like to learn more about R&D tax credit opportunities.
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