Statistics                                     

Big Picture: Hawaii

High Tech: data for Hawaii

• "R&D activity has been the strongest component of Hawaii's private tech sector, with a 36.1% increase in jobs from 2001-2005 - nearly 4 times faster than all private sector job growth."
• "In 2005, Hawaii's tech average salaries were $57,458 - 66% above the overall private sector average."
• "All major segments of the tech sector outperformed the overall economy in 2005, including technology services, up 4.1%; R&D activity, up 9.3%; and technology manufacturing, with an estimated 17.1% gain for the year"

Innovation Industry: Data for Hawaii 

• Over 1,500 companies (State Department of Labor. 2005)
• 13.7% growth in technology companies (State Department of Labor. 2001-2005)
• + $9 billion - estimated annual sector output
• 12% projected growth in Innovation Industries in next 10 years
• 63,010 total jobs in Innovation/Technology industries (State Department of Labor. 2004)
  • over 10% of Hawaii's employment
• $50,000 average wage
• $57,458 average wage in pure tech companies (66% above overall private sector average)
• 15.2% growth in average wage (DBEBT. 2001-2005)
• 1.6% growth in all other private sector wages (DBEDT. 2001-2005) 

ACT 221/215, the High Technology Business Investment Credit  

 

Act 221/215 has been successful in generating capital investment. During the period 2002 to 2006, results with the 287 Qualified High Technology Businesses (QHTB’s), benefiting from this incentive were:  

• Investments received totaled $821.6 million
• Spending by these companies in Hawaii totaled $1.043 billion
• Salaries paid totaled $505.8 million
• The 157 QHTB’s that filed in 2006 created, since their inception, 5,383 jobs
• The 157 QHTB’s that filed in 2006 had an average salary of $67,020
• The Tax Credit claimed by Hawaii residents totaled $195.6 million

In summary, the direct benefit to the state is close to $2 billion, with a cost to the state of less than 10% of that amount.  In other words, this is a return on investment for the state of approximately 10 times or 1000%!

The purpose of Act 221/215 is to increase investment in Hawaii's emerging science & tech companies.  In order to create high-paying jobs we first have to support the early stage growth of Hawaii's emerging innovation economy.  These tax incentives have been put in place to correct the previous lack of early state investment in Hawaii.  This has helped to establish Hawaii as a tech-friendly place to do business. 

Read the full report.  

 

Sources Include:

• State of Hawaii, Department of Taxation
• Bureau of Labor Statistics: Tech ingrained jobs.
• DBEDT: Technology defined companies.
• EnterpriseHonolulu: (Nov. 2006)
• Hawaii Film Board: Hawaii's Film & Digital workforce
• State of Hawaii Department of Labor - Annual Job Reports, Employment Outlook for Industries & Occupations 2004-2014, Input-Output table for Hawaii (2002-rev.2006).