Corporations can do more than just throw money at innovation efforts. Photo via Getty Images

I vividly remember, it was a typical Tuesday at Houston Exponential, and I’m sipping maybe my third coffee of the morning when the phone rings.

On the line is yet another hopeful voice from a newly minted innovation group at a "big company." They lay out their vision: “We’ve got this new innovation group! It’s me — a tech enthusiast who’s been yelling into the corporate void about needing to shake things up for the last two decades — plus a data scientist who loves numbers more than people, and a procurement guy who… well, procures stuff. And here’s the kicker: they’ve handed us $60 million to put to work. But here’s the catch — this treasure needs to be turned into a groundbreaking innovation that will dazzle the C-Suite, in about six months.”

I chuckle then sigh, because I’ve heard this story not once or twice, but about a dozen times over. And unfortunately, each of those grand plans crashed faster than a shooting star burning out over the Texas night sky — brilliant, swift, and leaving us wondering what might have been. Why? Well, let’s dig into some observations from my time working with institutional innovators from around the world and uncover just why throwing money at innovation like confetti at a wedding isn’t the quick fix big companies hope it will be.

The big miss here is a deep understanding of and ability to articulate the challenges. Innovation isn’t a highway where you can just press the gas and speed straight to Mt. Scale. It’s more like a winding country road with breathtaking views, unexpected potholes, and the occasional bewildered chicken crossing your path. For institutional innovators — the brave souls charting the course through this ever-changing landscape — the journey is filled with excitement, challenges, and the promise of discovery.

In my first hand experience mentoring over 500 startups and corporations, I’ve seen that the magic of innovation doesn’t come from a deep-pocketed budget but from a deep understanding of the problems we aim to solve. If you can view challenges through a kaleidoscope of perspectives, not just through the monochrome lens of one industry, you find the alternate routes that, while not exactly shortcuts, do keep you from turning down dark alleys and dead ends. A key observation here is that solutions to hard problems often lie in adjacent industries.

For example, consider how biomimicry has led to inventions like Velcro, inspired by burrs' ability to stick to animal fur, or how bullet trains in Japan were designed to mimic the kingfisher's beak for better aerodynamics. These are just a few examples of how solutions to complex problems often reside right in front of us or in the industry next door. Right here in Houston, Pumps & Pipes is a glowing example of how experts from Energy, Life Science and Space converge on similar problem sets with wildly different perspectives and applications.

Imagine if the engineers at NASA sat down for tacos with teachers from the local high school, or if doctors brainstormed with video game designers over a game of pickleball. Sounds fun, right? But it’s also where the magic happens. When we step out of our industry bubbles, we find that the solutions to our biggest problems often come from the most unexpected places.

So how do we begin to find these solutions? It all starts with a clear and clearly articulated challenge statement.

A crucial factor in encouraging organizations to look beyond traditional industry boundaries is to foster a deep understanding of problem-solution fit (you can read more about Problem - Solution fit in my last article here) and that means a deep understanding of the Problem. By guiding problem holders to dig deep into the nuances of the problems they aim to address, we expand their perspective. Once a comprehensive grasp of the problems are established, new pathways for solutions organically emerge. To do this you must broaden the collective thinking to the point where solutions from other industries become not just viable but often the most effective approach. My favorite quote on this subject is that “people don’t need a ¼ inch drill bit, they need a ¼ inch hole, and really they don’t need a ¼ hole, they need to hang a picture and when framed in that context, a command strip is more effective at solving the problem.”

So how do we do this? It’s easy, just continuously ask "why" or “why does this matter to your customer” to peel back the layers of the initial problem statements to reveal underlying causes or first principles. Ok this is actually much harder than it sounds but when organizations are guided through exercises to distill their challenges into first principles and more universal problem statements, a transformation occurs, resulting in several benefits:

  1. Expanding Solution Horizons: By elevating the problem discussion beyond industry-specific issues, the range of potential solutions widens remarkably.
  2. Universal Problem Statements: Restating the issues into more universal terms unlocks innovative approaches and solutions previously unseen.
  3. Enhanced Solution Fit and Success Probability: This reframing leads to solutions that are not only more fitting but also stand a higher chance of successfully being adopted and integrated and thus resolving the underlying issues.
  4. Increased Buy-In: These solutions are and are perceived as more novel and thus receive increased buy-in across the organization when moving towards adoption.

The critical lesson here is the power of abstracting the problem. By pulling back from the immediate and specific issues and reinterpreting them into broader, more universally applicable challenges, we can tap into a richer vein of solutions. This approach not only broadens the scope of potential innovations but also increases the alignment and effectiveness of the solutions we pursue.

The art of crafting challenge statements that are both broad enough to inspire innovative thinking and specific enough to be actionable is crucial. These statements serve as beacons, guiding both internal and external innovation efforts towards solutions that are not bound by conventional industry norms. By framing challenges in a way that invites diverse perspectives, organizations unlock innovative solutions that transcend traditional boundaries, fostering a more expansive and inclusive approach to problem-solving.

Turning lofty ambitions into tangible results begins with understanding that innovation isn’t just about flashy gadgets or the latest buzzwords. It’s about solving real problems for real people. This means rolling up our sleeves, listening intently, and sometimes realizing that the solution isn’t a high-tech wonder but perhaps something as simple and elegant as a command strip instead of a hole in the wall.

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Jon Nordby is managing partner at Anthropy Partners, a Houston-based investment firm, and professor of entrepreneurship at the University of Houston.

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Houston robotics co. unveils new robot that can handle extreme temperatures

Hot New Robot

Houston- and Boston-based Square Robot Inc.'s newest tank inspection robot is commercially available and certified to operate at extreme temperatures.

The new robot, known as the SR-3HT, can operate from 14°F to 131°F, representing a broader temperature range than previous models in the company's portfolio. According to the company, its previous temperature range reached 32°F to 104°F.

The new robot has received the NEC/CEC Class I Division 2 (C1D2) certification from FM Approvals, allowing it to operate safely in hazardous locations and to perform on-stream inspections of aboveground storage tanks containing products stored at elevated temperatures.

“Our engineering team developed the SR-3HT in response to significant client demand in both the U.S. and international markets. We frequently encounter higher temperatures due to both elevated process temperatures and high ambient temperatures, especially in the hotter regions of the world, such as the Middle East," David Lamont, CEO of Square Robot, said in a news release. "The SR-3HT employs both active and passive cooling technology, greatly expanding our operating envelope. A great job done (again) by our engineers delivering world-leading technology in record time.”

The company's SR-3 submersible robot and Side Launcher received certifications earlier this year. They became commercially available in 2023, after completing initial milestone testing in partnership with ExxonMobil, according to Square Robot.

The company closed a $13 million series B round in December, which it said it would put toward international expansion in Europe and the Middle East.

Square Robot launched its Houston office in 2019. Its autonomous, submersible robots are used for storage tank inspections and eliminate the need for humans to enter dangerous and toxic environments.

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This article originally appeared on EnergyCapitalHTX.com.

Houston's Ion District to expand with new research and tech space, The Arc

coming soon

Houston's Ion District is set to expand with the addition of a nearly 200,000-square-foot research and technology facility, The Arc at the Ion District.

Rice Real Estate Company and Lincoln Property Company are expected to break ground on the state-of-the-art facility in Q2 2026 with a completion target set for Q1 2028, according to a news release.

Rice University, the new facility's lead tenant, will occupy almost 30,000 square feet of office and lab space in The Arc, which will share a plaza with the Ion and is intended to "extend the district’s success as a hub for innovative ideas and collaboration." Rice research at The Arc will focus on energy, artificial intelligence, data science, robotics and computational engineering, according to the release.

“The Arc will offer Rice the opportunity to deepen its commitment to fostering world-changing innovation by bringing our leading minds and breakthrough discoveries into direct engagement with Houston’s thriving entrepreneurial ecosystem,” Rice President Reginald DesRoches said in the release. “Working side by side with industry experts and actual end users at the Ion District uniquely positions our faculty and students to form partnerships and collaborations that might not be possible elsewhere.”

Developers of the project are targeting LEED Gold certification by incorporating smart building automation and energy-saving features into The Arc's design. Tenants will have the opportunity to lease flexible floor plans ranging from 28,000 to 31,000 square feet with 15-foot-high ceilings. The property will also feature a gym, an amenity lounge, conference and meeting spaces, outdoor plazas, underground parking and on-site retail and dining.

Preleasing has begun for organizations interested in joining Rice in the building.

“The Arc at the Ion District will be more than a building—it will be a catalyst for the partnerships, innovations and discoveries that will define Houston’s future in science and technology,” Ken Jett, president of Rice Real Estate Company, added in the release. “By expanding our urban innovation ecosystem, The Arc will attract leading organizations and talent to Houston, further strengthening our city’s position as a hub for scientific and entrepreneurial progress.”

Intel Corp. and Rice University sign research access agreement

innovation access

Rice University’s Office of Technology Transfer has signed a subscription agreement with California-based Intel Corp., giving the global company access to Rice’s research portfolio and the opportunity to license select patented innovations.

“By partnering with Intel, we are creating opportunities for our research to make a tangible impact in the technology sector,” Patricia Stepp, assistant vice president for technology transfer, said in a news release.

Intel will pay Rice an annual subscription fee to secure the option to evaluate specified Rice-patented technologies, according to the agreement. If Intel chooses to exercise its option rights, it can obtain a license for each selected technology at a fee.

Rice has been a hub for innovation and technology with initiatives like the Rice Biotech Launch Pad, an accelerator focused on expediting the translation of the university’s health and medical technology; RBL LLC, a biotech venture studio in the Texas Medical Center’s Helix Park dedicated to commercializing lifesaving medical technologies from the Launch Pad; and Rice Nexus, an AI-focused "innovation factory" at the Ion.

The university has also inked partnerships with other tech giants in recent months. Rice's OpenStax, a provider of affordable instructional technologies and one of the world’s largest publishers of open educational resources, partnered with Microsoft this summer. Google Public Sector has also teamed up with Rice to launch the Rice AI Venture Accelerator, or RAVA.

“This agreement exemplifies Rice University’s dedication to fostering innovation and accelerating the commercialization of groundbreaking research,” Stepp added in the news release.