June 2026: 2.86% (A+ grade)

Hawaii inventionINDEX June 2026: 2.86% (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).

Historical Hawaii inventionINDEX Scores

The Hawaii inventionINDEX score for the past 12 months is shown in the table below.

The Hawaii inventionINDEX recorded an exceptional score of 2.86% in June 2026, earning a top-tier A+ rating. This latest figure represents a dramatic increase from the 1.17% score and C+ rating observed in May 2026, signaling a powerful short-term rebound. When viewed within the broader context of the past 60 months, the June 2026 score stands well above the historical baseline, as the long-term average for the index hovers around 1.34%. This recent peak demonstrates that the regional innovation ecosystem is currently operating at a highly elevated capacity compared to its historical performance over the last five years.

Examining the historical trajectory reveals notable volatility, highlighted by significant peaks and troughs throughout the 60-month period. The highest performance on record occurred in July 2024, when the index peaked at 3.03% with an A+ rating, which was immediately preceded by a historical low of 0.50% and an F rating in June 2024. The current score of 2.86% closely approaches that historical maximum, demonstrating a resilient return to peak performance after various cyclical downturns, such as the multiple occurrences of a D- rating at 0.67% seen in February 2025, November 2023, and July 2023. This comparison highlights a pattern of rapid recovery, showing that while the index experiences periodic contractions, its upward momentum remains fundamentally robust.

Achieving a higher grade and score carries several positive outcomes that significantly benefit the regional economy and intellectual community. An A+ rating, such as the one achieved in the most recent month, serves as a powerful indicator of a thriving entrepreneurial ecosystem, which can attract substantial venture capital, federal grants, and corporate partnerships. Furthermore, elevated scores suggest an accelerated rate of patent filings, technological breakthroughs, and commercialization activities that drive high-value job creation. This strong performance bolsters the region’s reputation as a forward-thinking hub for research and development, fostering a supportive environment where inventors and stakeholders can confidently collaborate.

Conversely, a lower score and corresponding poor grade carry serious negative implications for the innovation landscape. When the index drops to lower levels, such as the D or F ratings observed during historical contractions, it typically signals economic stagnation, decreased funding accessibility, or a decline in creative output. Such downward shifts can dampen investor enthusiasm, lead to a loss of competitive advantage relative to other regions, and cause a slowdown in the translation of research into marketable products. These periods of underperformance underscore the necessity of targeted policy interventions, enhanced educational support, and strategic investments to stabilize the ecosystem and mitigate the risks associated with prolonged declines.

Discussion:

In June, the Hawaii inventionINDEX scored a positive sentiment which was higher than the previous year’s average and outperformed the upward trend for the year. This is in contrast to the prior 12 months, which experienced a considerable 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.