HAWAII INVENTIONINDEX | NOVEMBER 2025

November 2025: 1.34% (B grade)

Hawaii inventionINDEX November 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).

Hawaii inventionINDEX Scores – Last 12 months

The inventionINDEX for the last sixty-one months presents a historical record of both stability and considerable volatility in performance. The most recent score of 1.34% for November 2025, which corresponds to a ‘B’ rating, aligns precisely with the long-term median score for the entire period. While the recent 12-month average of 1.28% is marginally below the overall historical average of 1.31%, the current performance suggests a return to a normative level following a period that included a significant high of 3.03% in July 2024 and a low of 0.50% in June 2024. This recent oscillation between high and low performance demonstrates that the underlying innovation ecosystem is highly dynamic yet inconsistent in its output.

The positive outcomes associated with a high inventionINDEX score, such as those that frequently achieve ‘A’ or ‘A+’ ratings, signal a powerful and highly effective environment for innovation. High scores, which occurred in over 37% of the recorded months, strongly indicate a robust pipeline of high-quality intellectual property, reflecting successful commercialization of research, a healthy investment climate for technology development, and streamlined mechanisms for patent generation. Consistently achieving these top-tier ratings fosters external confidence, attracts further capital investment, and positions the region as a leader in creating and leveraging proprietary technologies for economic advantage.

Conversely, a lower inventionINDEX score carries negative implications that cannot be overlooked. Ratings in the ‘D’ and ‘F’ ranges, which collectively constitute over 21% of the historical table, suggest periods of stagnation or systemic inefficiency. A score drop to the 0.50% low, for instance, implies a significant challenge in converting research and development efforts into quantifiable, protectable outputs. Sustained lower scores may signal critical issues such as inadequate funding for early-stage ventures, bureaucratic hurdles in the patent application process, or a structural inability to retain high-skilled researchers and entrepreneurs, all of which suppress future economic growth and competitiveness.

In conclusion, the historical data illustrates a moderately successful innovation environment that operates with notable inconsistency. While the frequency of top-tier ‘A’ and ‘B’ ratings is encouraging, the recurring dips into the lower ‘D’ and ‘F’ categories suggest a need for strategic intervention to stabilize performance. Maintaining and exceeding the historical median requires a targeted focus on minimizing the factors that lead to low-scoring months, ensuring that the necessary resources and infrastructure are consistently available to support the translation of fundamental research into high-value, patentable inventions, thereby securing a trajectory of sustained growth.

Discussion:

In November, the Hawaii inventionINDEX scored a positive sentiment which was higher than the previous year’s average but underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced an upward 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.