Local Tech and Manufacturing Companies Contributed More Than $1 Billion to Hawaii’s Economy, HTDC Annual Survey FindsPosted on Apr 9, 2018 in News
Hawaii Technology Development Corporation
For Immediate Release: April 9, 2018
State gained $48.69 million in taxes in 2017
HONOLULU—Local small businesses boosted the state’s economy with an estimated total economic impact of $1.05 billion in 2017, according to the Hawaii Technology Development Corporation (HTDC) Annual Economic Impact Report of companies benefiting from HTDC programs. The economic benefit calculation is based on a multiplier that includes direct revenue, spending by the company, and employees’ spending. The state received $48.69 million in taxes generated.
Approximately 71 percent of the 211 companies completed the survey. The 149 companies that responded — which included all active Manoa Innovation Center/Maui Research & Technology Center tenants, virtual & graduate incubator companies, Neighbor Island Innovation Initiative (NI3) clients and Hawaii Small Business Innovation Research (HSBIR) & Manufacturing Assistance Program (MAP) grant awardees — had an estimated $588.62 million in total revenue, generated $282.1 million in income and provided 3,736 local jobs. The annual survey measures HTDC’s progress toward its 80/80 Initiative, which aims to create 80,000 new jobs paying $80,000 or more by 2030.
The HSBIR grant program provides matching grants, up to 50 percent of funding, to help companies advance innovative products from research to market.
Twenty-nine companies receiving HSBIR funds reported the following economic data points:
|Total economic impact:||$117.11 million|
|Total revenue:||$61.27 million|
|State taxes generated:||$8.19 million|
The MAP program supports Hawaii’s manufacturers by providing reimbursements for qualified expenses, including equipment purchases, employee training, and costs related to improving facilities and processes.
Sixty-nine companies receiving MAP funds reported the following economic data points:
|Total economic impact:||$876.29 million|
|Total revenue:||$493.88 million|
|State taxes generated:||$38.02 million|
The return on investment for the state grant programs is $14 in state taxes for every $1 awarded in grants.
The NI3 program provides mentorship support for innovative companies on Kauai and Hawaii Island. Twenty-five companies reported a total economic impact of $50.5 million, total revenue of $28.71 million, and 304 local jobs.
The results above represent only the respondents, therefore, the figures should be viewed as conservative indicators of the overall contribution of companies benefiting from HTDC programs. The Department of Business, Economic Development & Tourism (Research & Analysis Division) performed the impact analysis of the survey results.
About HTDC (Hawaii Technology Development Corporation)
HTDC is a state agency, attached to the state Department of Business, Economic Development and Tourism (DBEDT). HTDC’s mission is to facilitate the development and growth of Hawaii’s high technology industry. HTDC is providing capital, building infrastructure and developing talent to foster innovation and diversify Hawaii’s economy. HTDC’s 80/80 Initiative is to create 80,000 new tech and innovation jobs that will provide high paying jobs for Hawaii residents.