Let , with its degree grading, and let be the polynomial invariant ring. For a compact group average polynomials over ; for a complex reductive group average over its Zariski-dense compact form from part (i). Each degree piece is finite dimensional, so this defines a polynomial and gives the Reynolds operator on a polynomial invariant ring
It preserves degree. For the reductive case compact invariance is full group invariance by Zariski density.
Let be the positive-degree invariants and form the ideal . The Hilbert basis theorem makes a Noetherian ring, so finitely many homogeneous invariants generate as an -ideal. Indeed start with a finite ideal-generating set and collect the finitely many invariants occurring in expressions for those generators; then replace them by homogeneous pieces.
We claim that these same generate as an algebra. For a homogeneous invariant of degree , write with homogeneous coefficients of degree ; terms of negative degree are absent. Apply the Reynolds operator on a polynomial invariant ring to get . The averaged coefficients are invariant and have smaller degree than . Starting from the constants, induction on degree puts them and then in . Taking homogeneous pieces covers every invariant. This proves Hilbert finite generation for reductive invariants:
Noetherianity alone would not suffice for a subring; the Reynolds module property is the step that makes the induction work.

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