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The U.S. Department of Health and Human Services has awarded $18M to scientists at Rice. Photo courtesy Rice University.

Editor's note: We're looking back at the five biggest innovation headlines from the second half of February 2026, which include exciting Rice research advancements and Apple doubling down on production in Houston. Below are the five most-read InnovationMap stories from Feb. 16-28, 2026.

1. Rice University lands $18M to revolutionize lymphatic disease detection

Rice University scientists are pioneering two technologies to better diagnose and treat complex lymphatic anomalies. Photo via Getty Images.

An arm of the U.S. Department of Health and Human Services has awarded $18 million to scientists at Rice University for research that has the potential to revolutionize how lymphatic diseases are detected and help increase survivability. Continue reading.

2. Tech giant Apple doubles down on Houston with new production facility

Apple doubles down on Houston with new production facility, training centerPhoto courtesy Apple.

Tech giant Apple announced that it will double the size of its Houston manufacturing footprint as it brings production of its Mac mini to the U.S. for the first time. The company plans to begin production of its compact desktop computer at a new factory at Apple’s Houston manufacturing site later this year. The move is expected to create thousands of jobs in the Houston area, according to Apple. Continue reading.

3. Houston startup debuts new drone for first responders

Paladin Drones has revealed its next-gen emergency response drone, Knighthawk 2.0. Photo courtesy Paladin.

Houston-based Paladin Drones has debuted Knighthawk 2.0, its new autonomous, first-responder drone. The drone aims to strengthen emergency response and protect first responders, the company said in a news release. “We’re excited to launch Knighthawk 2.0 to help build safer cities and give any city across the world less than a 70-second response time for any emergency,” said Divyaditya Shrivastava, CEO of Paladin. Continue reading.

4. XSpace adds 3 Houston partners to fuel national expansion

XSpace, an innovative commercial real estate company, has partnered with three Houston firms to help grow its footprint. Rendering via xspacegroup.com

Texas-based XSpace Group has brought onboard three partners from the Houston area to ramp up the company’s national expansion. The new partners of XSpace, which sells high-end multi-use commercial condos, are KDW, Pyek Financial and Welcome Wilson Jr. Houston-based KDW is a design-build real estate developer, Katy-based Pyek offers fractional CFO services and Wilson is president and CEO of Welcome Group, a Houston real estate development firm. Continue reading.

5. Houston doctor wins NIH grant to test virtual reality for ICU delirium

Dr. Hina Faisal will test the effects of VR games on patients coming out the ICU, thanks to a recent NIH grant. Photo via Getty Images.

Think of it like a reverse version of The Matrix. A person wakes up in a hospital bed and gets plugged into a virtual reality game world in order to heal. While it may sound far-fetched, Dr. Hina Faisal, a Houston Methodist critical care specialist in the Department of Surgery, was recently awarded a $242,000 grant from the National Institute of Health to test the effects of VR games on patients coming out of major surgery in the intensive care unit (ICU). Continue reading.

Paladin Drones has revealed its next-gen emergency response drone, Knighthawk 2.0. Photo courtesy Paladin.

Houston startup debuts new drone for first responders

taking flight

Houston-based Paladin Drones has debuted Knighthawk 2.0, its new autonomous, first-responder drone.

The drone aims to strengthen emergency response and protect first responders, the company said in a news release.

“We’re excited to launch Knighthawk 2.0 to help build safer cities and give any city across the world less than a 70-second response time for any emergency,” said Divyaditya Shrivastava, CEO of Paladin.

The Knighthawk 2.0 is built on Paladin’s Drone as a First Responder (DFR) technology. It is equipped with an advanced thermal camera with long-range 5G/LTE connectivity that provides first responders with live, critical aerial awareness before crews reach the ground. The new drone is National Defense Authorization Act-compliant and integrates with Paladin's existing products, Watchtower and Paladin EXT.

Knighthawk 2.0 can log more than 40 minutes of flight time and is faster than its previous model, reaching a reported cruising speed of more than 70 kilometers per hour. It also features more advanced sensors, precision GPS and obstacle avoidance technology, which allows it to operate in a variety of terrains and emergency conditions.

Paladin also announced a partnership with Portuguese drone manufacturer Beyond Vision to integrate its Drone as a First Responder (DFR) technology with Beyond Vision’s NATO-compliant, fully autonomous unmanned aerial systems. Paladin has begun to deploy the Knighthawk 2.0 internationally, including in India and Portugal.

The company raised a $5.2 million seed round in 2024 and another round for an undisclosed amount earlier this year. In 2019, Houston’s Memorial Villages Police Department piloted Paladin’s technology.

According to the company, Paladin wants autonomous drones responding to every 911 call in the U.S. by 2027.

A concept design rendering of Persona AI's humanoid robot. The company is one of the finalists for the 2025 Houston Innovation Awards in the Deep Tech Business category. Rendering courtesy Persona AI.

6 Houston startups disrupting industries with innovative technology

meet the finalists

Houston is no stranger to technology that's shaping the future. As the longtime location of NASA Johnson Space Center to home base for new ventures disrupting industries with their technology, the Bayou City has had its finger on the pulse of what's new and next for decades.

The Deep Tech Business category in our 2025 Houston Innovation Awards will honor an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors.

Six deep tech companies have been named finalists for the 2025 award. They range from a company developing predictive software to accelerate the energy transition to a new venture that's developing humanoid robots.

Read more about these businesses, their founders and their breakthrough technologies below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled.

Tickets are now on sale for this exclusive event celebrating Houston Innovation.

ARIX Technologies

Industrial and robotics company ARIX Technologies is an integrated robotics and data analytics company that delivers inspection services. Its ARIX VENUS robot combines aerospace-grade engineering, advanced non-destructive testing (NDT) and AI-powered analytics to detect hidden corrosion under insulation for the downstream energy, petrochemical, and chemical processing sectors.

ARIX was founded in 2017 by Dianna Liu, a former ExxonMobil engineer. Craig Mallory serves as CEO. The company reports that it is scaling deployments with major Gulf Coast refineries, expanding its analytics platform to include predictive corrosion modeling and growing a global partner program.

Little Place Labs

Space tech company Little Place Labs is developing an AI, machine-learning software across a network of satellites that can provide insights from space in under seven minutes.

The company was founded in 2022 by CEO Bosco Lai and CTO Gaurav Bajaj. The company recently received an award from the U.S. Space Force that will support it in deploying multiple applications and products onto more than 55 satellites over the next 36 months for both national security and commercial use cases. The company won the Security, GovTech & Space competition at the SXSW Pitch showcase last year.

Newfound Materials

Newfound Materials has developed a predictive synthesis software platform for accelerating the discovery of novel materials for critical energy applications, such as batteries, magnets, catalysts, and more. It guides users on the best experiments to try in the lab to optimize the synthesis of their materials.

Newfound Materials was founded in 2024 by CEO Matthew McDermott and participated in the inaugural Activate cohort. The company plans to release a public web app soon. It also has plans to raise a pre-seed or angel round.

Paladin Drones

Paladian develops drone-as-first-responder (DFR) systems for public safety. Its technology gives first responders live aerial video before teams arrive, enabling quicker decisions, better resource allocation and reduced false alarms.

The company was founded in 2018 by Divyaditya Shrivastava and participated in the Y Combinator accelerator that year. The company raised a $5.2 million seed round in 2024 and another round for an undisclosed amount earlier this year. In the future, it plans to expand its DFR deployments into more cities, offer new payload delivery capabilities (like delivering Narcan and life vests), and enhance deconfliction features.

Persona AI

Persona AI is building modularized humanoid robots that aim to deliver continuous, round-the-clock productivity and skilled labor for "dull, dirty, dangerous, and declining" jobs.

The company was founded by Houston entrepreneur Nicolaus Radford, who serves as CEO, along with CTO Jerry Pratt and COO Jide Akinyode. It raised eight figures in pre-seed funding this year and also expanded its operations at the Ion. The company is developing its prototype of a robot-welder for Hyundai's shipbuilding division, which it plans to unveil in 2026.

Tempest Droneworx

Tempest Droneworx provides real-time intelligence collected through drones, robots and sensors. Its Harbinger software platform shares data through a video game engine and aims to provide teams with early warning and insight to help them make decisions faster.

The company was founded in 2021 by CEO Ty Audronis and COO Dana Abramovitz. It participated in the Mass Challenge Air Force Labs and won the Best Speed Pitch at SXSW earlier this year. The company is currently raising a $2.5M seed round.

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Paladin Drones wants eyes in the skies within 30 seconds of an emergency call. Getty Images

Houston drone company creating the next generation of first responders

To the rescue

When 911 is called, first responders usually arrive at the scene around three or four minutes after the call's placed. But Houston-based Paladin Drones wants to have eyes on the ground ­— or eyes in the sky — within the first 30 seconds.

The company's mission is simple: to outfit public agencies and first-responders with drones that can be autonomously deployed to the site of an emergency. Equipped with thermal sensors and flying around 200 feet high, the drones can give police and firefighters near-instantaneous information on a situation underway.

At the beginning of April, Paladin Drones began working with the Memorial Villages Police Department to respond to incidents in Memorial Villages, Hunter's Creek, Piney Point Village, and Bunker Hill.

"(This is) one of the first departments in the country to be testing this technology," says Paladin Drones co-founder Divyaditya Shrivastava. "We're very limited in the area that we cover, and that's just because we're taking baby steps and going as carefully and deliberately as possible."

Paladin Drones was co-founded by Shrivastava and Trevor Pennypacker. In 2018, the company went through a three-month boot camp at Y Combinator, a California-based incubator that's churned out Dropbox, AirBNB, Instacart and more. Through Y Combinator, Paladin Drones was connected with venture capital investors in Houston.

The company's drones capture critical information, such as a vehicle's color and body type, a suspect's clothing, or the direction a suspect fled the scene. And since roughly 70 percent of 911 calls involve witnesses or passerby giving inaccurate information about the emergency's location, these drones will be able to pinpoint the exact location of an emergency, further aiding the arrival of first responders.

"We're working on tracking technology to give the drones the capability to auto-follow (suspects)," Shrivastava says.

Paladin Drones is looking to hire a handful of employees in the coming months, Shrivastava says. He declined to disclose any information on the company's funding plans, but said it's still involved with Y Combinator in California.

Shrivastava began developing Paladin Drones when he was finishing high school in Ohio. The summer before his senior year, a friend's house burned down. While nobody was injured in the fire, the home was destroyed, and Shrivastava spoke with the local firefighters. Tragically, the 911 call that alerted firefighters of the emergency was one of the 70 percent of calls that involved inaccurate location information.

"If they'd known the exact location, the house would've been saved," Shrivastava says. "A fire doubles every 30 seconds."

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Eli Lilly breaks ground on $6.5B pharmaceutical factory in Houston

lilly lands

Leading pharmaceutical company Eli Lilly broke ground today, Sept. 21, on its $6.5 billion manufacturing site at Houston's Generation Park.

The 236-acre, state-of-the art factory is expected to come online in 2030 and will manufacture Foundayo, the company's first synthetic oral GLP-1 medication, as well as other advanced therapeutics.

"We are thrilled to break ground on our latest ‘medicines made in America’ site in the great state of Texas," David Ricks, Lilly chair and CEO, said in a prepared statement. "This $6.5 billion investment will help change the game for tens of millions of people suffering from overweight, obesity and its consequences like diabetes. We will make and ship Lilly’s latest products from Texas to people here at home and around the world.”

Houston was up against more than 300 locations in the U.S. for the factory, as part of Lilly’s $50 billion investment in domestic medicine production that has launched 10 manufacturing sites since 2020. Lilly first announced Houston had been selected for the site last September.

Photo via gov.texas.gov

As Abbott mentioned, the site is expected to create hundreds of jobs, and will hire engineers, scientists, operations personnel and lab technicians once up and running. It will create 4,000 construction jobs while being built.

In an effort to support workforce development, Lilly also announced a $12.5 million commitment to Houston's San Jacinto College in addition to a $2.5 million charitable donation to the San Jacinto College Foundation. The funding will go toward hands-on training, equipment and facilities to support future technicians, operators, maintenance professionals, and other manufacturing talent, according to Lilly. The charitable donation will fund scholarships for students.

"This relationship will build a strong, sustainable talent pipeline for Lilly while creating meaningful, high-demand career opportunities across our region,” Brenda Hellyer, chancellor of San Jacinto College, said in the release.

"When you invest in a place like Houston, you invest in its people first," Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations, added. "This facility will run on the talent of this community, powered by our relationship with San Jacinto College. We're hiring across the greater Houston area to help residents build careers close to home."

Rendering courtesy Eli Lilly

Lilly previously said it chose Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston, because of factors such as financial incentives, access to utilities and transportation and the region’s business-friendly environment. Generation Park is home to campuses for San Jacinto College and Lone Star College.

Since Lilly first announced plans for the site, another fellow pharma giant has made plans to move into Generation Park. Bristol Myers Squibb Co. announced last month that it would build a $2.3 billion factory in the district. The site is expected to manufacture small molecule, biologic and antibody-drug conjugates and will also come online around 2030. Read more here.

UH Health names leader of new digital health institute

new exec

Recently launched UH Health has named the first-ever executive director of its new Institute for Digital Healthcare Transformation at the University of Houston.

Beto López has been tapped to lead the new initiative that aims to help develop and commercialize health care technologies centered around university research.

Launched in August, the Institute for Digital Healthcare Transformation leans on experts from UH’s engineering, medicine, business, law and other departments and will connect with industry partners. It will initially focus on mobile health applications, sensors, wearables and artificial intelligence, according to UH.

“Most digital health initiatives and commercialization efforts start with the technology and hope adoption follows. But the translation gap isn't a science problem — it’s a scaffolding problem between researchers, the community and the market,” López said in a news release. “I've spent the past 10 years building that scaffolding in places that weren’t wired for it, and I'm looking forward to building it here at UH to help ensure new health care technologies reach the people and communities that can benefit from them most.”

López previously spent 10 years at San Francisco-based innovation consultancy company IDEO, where he led over 100 projects for Fortune 500 companies and public agencies. He co-founded and served as managing director of the Design Institute for Health at UT Austin’s Dell Medical School; and also co-founded a social venture studio/venture capital fund focused on health care innovation. He worked alongside Houston’s Legacy Community Health during the COVID-19 pandemic.

“Beto understands that breakthrough technology alone doesn't transform health care — it has to be designed around the needs of patients, providers and communities and have a clear path into practice,” Jonathan McCullers, vice president for health affairs at UH, added in the news release. “His experience spanning academic health care and venture capital equips him to bring together researchers, health care organizations, entrepreneurs and investors. This makes him uniquely suited to lead this institute and help turn the university's innovation into solutions that improve people's lives.”

The University of Houston launched UH Health, its new cross-disciplinary academic venture, in July. It aims to bring together the university's health-related education, research and community impact under one umbrella.

ExxonMobil gets approval for $5B Texas Gulf Coast carbon capture project

CCS Expansion

Spring-based ExxonMobil has won approval from the Texas Railroad Commission for a $5 billion carbon capture and storage project in East Texas.

Dominic Genetti, senior vice president of CCS at ExxonMobil, told The Financial Times, which broke the news, that the Railroad Commission’s action is a “major milestone” that lets the company keep expanding along the Gulf Coast. In a 2-1 vote, commissioners authorized a carbon sequestration permit for the project.

“The Railroad Commission clearly recognizes the important role carbon capture and storage can play in meeting growing global demand for lower-carbon products while supporting new jobs and economic growth,” Genetti said.

The U.S. Environmental Protection Agency (EPA) approved ExxonMobil’s Rose CCS project last year.

The project will enable the company to inject about 53 metric tons of industrial customers’ carbon emissions into three underground wells it drilled in the Beaumont-Port Arthur area. Over a 13-year period, ExxonMobil plans to inject about 4 million metric tons per year into the Fleming and Upper Frio rock formations, according to Carbon Herald.

ExxonMobil says it owns the world’s first and largest CCS system, comprising 1,300 miles of CO2 pipeline and secure storage sites. Seventy percent of the pipelines are along the Gulf Coast.

The company ramped up its CCS business in 2023 with the $4.9 billion purchase of Denbury, which owned about 1,000 miles of CO2 pipelines.

“Our expertise, combined with Denbury’s talent and CO2 pipeline network, expands our low-carbon leadership and best positions us to meet the decarbonization needs of industrial customers while also reducing emissions in our own operations,” ExxonMobil Chairman and CEO Darren Woods said when the deal closed.

In January, Genetti wrote in a post on ExxonMobil’s website that the company is committed to CCS “for the long haul.”

“CCS is not new technology, but it’s flown relatively under the radar compared with the attention that production of hydrocarbons commands,” he wrote. “Now, as the world becomes more aware of the need to reduce emissions, CCS finally has a brighter spotlight and a broader runway to scale up.”

The company also announced this week that it has begun CCS operations at a direct reduced iron facility in Convent, Louisiana. The project will capture, transport and store up to 800,000 metric tons of CO2 per year, according to the company.

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This article first appeared on EnergyCapitalHTX.com.

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