A Study on the Regional Competitiveness of Hawaii

Abstract

Background/Objectives: Hawaii's economy is growing at a high rate, while its unemployment rate is falling. This study elaborately analyzes Hawaii's current regional competitiveness and makes suggestions to improve it further.
Methods/Statistical Analysis: This study analyzed the regional competitiveness of Hawaii in four areas. First, Corporation competitiveness increases profitability by developing superior products and business models. Second, Industry competitiveness is the ability to establish the framework to be a knowledge-based industry. Third, Site conditions refer to the material and cultural situations, including infrastructure, educational institutions, and industrial complexes. Lastly, Policies include investment incentives and subsidies provided by local governments.
Findings: From a corporation competitiveness perspective, Hawaii has a high proportion of small businesses. In terms of industry, the federal government's military spending and tourism are the key sectors that lead the economy, while other industries are weak. In terms of site conditions, there are abundant natural tourism resources, such as the Hawaii Volcanoes National Park, Lanikai Beach, and the Diamond Head State Monument. Hawaii's overall education level is not as bad as the national average. However, it is hard to find excellent research institutes and notable higher education institutions. From a regional policy perspective, the Hawaiian government has introduced the concept of targeted industry portfolio to assess the level of new growth engines each year since 2009.Nevertheless, the target industry sector selected as a new growth engine has not been successful in the region yet.
Improvements/Applications: Hawaii has achieved economic growth through the development of its tourism industry. However, other industries are still weak and Hawaii does not have enough innovative corporations or access to top-level human resources.