We prove an induction theorem for the higher algebraic K-groups of group algebras of finite groups over characteristic finite fields . For a certain class of finite groups, which we call -isolated, this reduces calculations to calculations for their -subgroups. We do so by showing that the stable module categories of as ranges over subgroups of assemble into a categorical Green functor, which results in a spectral Green functor structure on K-theory. By general induction theory, this reduces proving a spectrum-level induction statement to proving an induction statement on Green functors, which we accomplish using modular representation theory. For -isolated groups with Sylow -subgroups of order , we produce explicit new calculations of K-groups.

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