February 2026: 0.84% (D+ grade)
Hawaii inventionINDEX February 2026: 0.84% (D+ 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 |
| February 2026 | 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% |
| Mar 25 | 1.17% |
| Feb 25 | 0.67% |
The Hawaii inventionINDEX score for February 2026 stands at 0.84 percent, reflecting a notable decline from the 1.85 percent recorded just one month prior. This transition from an A+ rating in January to a D+ rating in February indicates a volatile start to the year. While the index has historically shown a capacity for rapid recovery, this current dip places the state’s innovation metrics in a defensive position. The immediate trend suggests a cooling of the momentum that characterized the beginning of 2026, requiring a closer look at the underlying factors that influenced this sharp contraction.
When examining the data over the last 60 months, the February 2026 score sits near the lower end of the historical spectrum. It is significantly lower than the five-year peak of 3.03 percent reached in July 2024, yet it remains above the five-year floor of 0.50 percent seen in June 2024. Over the past five years, the index has frequently oscillated between high-performing peaks and periodic troughs. The current score of 0.84 percent is consistent with other historical low points, such as those seen in August 2025 and January 2023, suggesting that the invention landscape in Hawaii operates in distinct cycles of activity rather than a steady upward trajectory.
Achieving a higher grade, such as the A+ ratings seen periodically throughout the last 60 months, brings significant positive outcomes for the local economy. A high inventionINDEX score typically correlates with increased patent filings, robust research and development activity, and a surge in entrepreneurial spirit. These periods of high performance signal to investors and talent that Hawaii is a fertile ground for technological advancement and intellectual property growth. High scores foster an environment where innovation can flourish, leading to job creation in high-tech sectors and strengthening the state’s reputation as a competitive player in the global knowledge economy.
Conversely, lower scores and ratings like the current D+ carry negative implications for the state’s long-term growth. A sustained lower score may indicate a lack of investment in new technologies, administrative hurdles in the patenting process, or a brain drain where local talent seeks opportunities elsewhere. These periods of stagnation can discourage venture capital and slow the pace of economic diversification. If the index remains low, it suggests that the local innovation ecosystem is struggling to convert ideas into tangible assets, potentially leaving Hawaii behind as other regions accelerate their technological development. Continuous monitoring and strategic support are essential to reversing these downward trends and regaining a competitive edge.
Discussion:
In February, the Hawaii inventionINDEX scored a negative sentiment which was lower than the previous year’s average and 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.
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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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