Hawaii inventionINDEX September 2026: 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).

Historical Hawaii inventionINDEX Scores

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

The Hawaii inventionINDEX for September 2026 stands at 1.51% with an A- rating, marking a substantial recovery from the preceding two months. In August 2026, the index registered at 1.17% with a C+ rating, following a July score of 1.01% with a C rating. Compared to the historical 60-month average of approximately 1.34%, the latest September figure reflects an above-average performance that positions current inventive activity on a solid growth trajectory. This upward movement continues a pattern observed earlier in 2026, where the metric reached a remarkable 2.86% in June before undergoing a brief mid-summer deceleration.

A broader examination of the multi-year historical dataset reveals significant long-term fluctuations in Hawaii’s innovation output. The highest mark recorded across the entire timeframe occurred in July 2024, when the score reached 3.03% with an A+ rating, closely followed by June 2026 at 2.86%. Conversely, the lowest historical reading occurred in June 2024, dropping to 0.50% with an F rating. Throughout the past five years, the index frequently oscillates between strong performance quarters with scores around 1.85% and periods of contraction near 0.67% to 0.84%, demonstrating cyclical momentum in regional invention activity.

Sustaining higher grades such as A- or A+ yields numerous positive outcomes for the regional innovation ecosystem. Stronger scores indicate elevated patent activity, robust research and development output, and accelerated commercialization of new technologies. A high inventionINDEX rating enhances investor confidence, attracts venture capital funding to local startups, and signals overall economic vitality. Furthermore, top-tier performance fosters high-value job creation, encourages institutional research partnerships, and reinforces Hawaii’s competitive edge in key technological sectors.

On the other hand, prolonged periods of lower scores and diminished grades carry notable negative implications for the local economy. Ratings falling into the C, D, or F ranges signal potential bottlenecks in technology transfer, reduced commercial activity, or declining research funding. Lower index scores can stifle entrepreneurial momentum, leading to venture capital flight and potential brain drain among skilled researchers and engineers. Consequently, monitoring these dips provides crucial foresight for policymakers and business leaders to implement targeted support measures during leaner innovation cycles.

Discussion:

In September, 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.

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