The Orca has been conceived as a moulded plastic flotation chamber with jet boat engine pods, powered by lithium ion batteries.
Further development from his initial concept has included switching from a single moulded seat to two lift-up seats with storage beneath.
"The response to the idea has been fantastic and I am hoping to develop the idea further."
YIA project manager Stacey Jones said organisers had been thrilled to receive more than 150 entries for this year's awards.
"It was an incredible year with some hugely innovative creations and Kyle's idea is a true testament to the creative minds within the Bay of Plenty. A couple of the projects have piqued interest from potential investors to progress the ideas further, which is hugely exciting for the programme."
Mr Brown, who is now in his first year of a mechanical engineering degree at University of Auckland, is currently looking for an internship for the summer break.
During the summer he plans to take up an offer from Mr Macrae to introduce him to members of the Tauranga lifeguard community, who could provide additional feedback to refine the concept.
The annual awards are designed to inspire a culture of innovation in the Bay of Plenty.
Priority One's Instep manager Lyn Parlane said: "For our sub-region to compete within a rapidly changing global economy, employers will increasingly require employees to have the confidence and ability to think creatively and outside the box, like Kyle and our other YIA winners."
Young Innovator Award winners
Supreme Award & Over 18s Award: Kyle Brown, Offshore Rescue Craft: Aotearoa (Orca)
Senior Award Joint First: Hannah Payne (Tauranga Girls' College), Charlie's Handgels; Jaysha Tippins (Tauranga Girls' College), Springback Road Marker
People's Choice Award: Briar Patel (Aquinas College), Water Play Activity
Junior Award: Fergus Lellman and Lucy Maher (Aquinas College), Kids Safe.