Collaborative for Children is focused on utilizing social-emotional learning robots and coding tech toys. Photo courtesy of Collaborative for Children

Generally, when children are under the age of five, educators believe that they are best suited for and interested in learning, because those are the years in which there is the strongest opportunity to build a broad and solid foundation for lifelong literacy and well-being.

That sentiment is deeply held by Collaborative for Children, the Houston-based nonprofit organization with the mission to meaningfully improve the quality of early childhood education and provide access to cutting-edge technology through its Centers of Excellence to all children, especially those in low-income and marginalized communities.

“The reason the organization was started about 40 years ago is that a group of philanthropists in the greater Houston area suggested that this was so important because 90 percent of the brain develops or grows in the time frame between ages zero to five years of age,” Melanie Johnson, president and CEO of Collaborative for Children, tells InnovationMap.

“And if we were losing children and not preparing them by third grade to be literate, and then subsequently losing them after that for high dropout rates and achievement gaps between poor and affluent children, that this would be the perfect place to start," she continues. "And so, they put the collaborative, the emphasis, and finances collaborative of every, most every early education effort around this region.”

Collaborative for Children’s work in the community is centered around making sure that there is educational equity for all children, regardless of financial status, and providing access to technologies in meaningful ways.

“Ultimately, we want to bridge the digital divide early on so that when children start off their academic journey, they're starting off equipped with the skills to be successful there on,” says Johnson.

Most recently, the institution has focused on utilizing social-emotional learning robots and coding tech toys like the Pepper — the world’s first social humanoid robot able to recognize faces and basic human emotions — and NAO, which resembles human being and stimulates, robots to enhance learning in the classrooms of its Centers of Excellence.

“Technology enhances the learning experience in the Centers of Excellence in ways that a teacher might not be able to,” says Johnson. “Artificial intelligence is used in gamification to allow a child to play and learn while playing.”

For Collaborative for Children, gamification involves transforming typical academic components into gaming themes.

“While playing, the AI gauges the level of skills that they’ve been able to enter into that system and respond with even more challenging tasks or tasks that are still lateral so that they can continue to repeat that skill,” says Johnson.

The socio-emotional learning robots are indeed fascinating, but how does the nonprofit reach these children, and their parents, who might be skeptical of technology?

Ultimately, through the teachers. They draw them in via the technology. If teachers are excited, they act as a conductor of that energy to their students, making their innovative lessons well, electric.

That resonates with most all children, but especially with those diagnosed with autism.

“Robotics like NAO are great for children on the autism spectrum because they are emotionally sensitive and emotionally intelligent,” says Johnson. “They are low sensory, so as NAO runs around the classroom, it can literally have individual and unique conversations with each child based on facial recognition. But most importantly for me, is that this particular robot is able to evaluate children without statistical bias that a teacher might have.

“A teacher might think that because a child confuses the letter D and B, which are basically shaped the same in opposite directions, that they're not learning," she continues. "And the robot will have no prior knowledge in terms of, is this child the better child, or have they been learning throughout the year? The answers are accurate or inaccurate. So, they remove statistical bias when assessing children in the classroom.”

The misconception about teaching technologies is that it’s about screen time. According to Johnson, it’s not. It’s more about interacting with technology.

“We’ve added, you know, all kinds of modern-day technology so that this world that we're preparing these children for 80 percent of the jobs we don't even know will exist when they are adults,” says Johnson. “So, we're just trying to make sure that there is no divide in terms of 21st century skills and 21st century preparation.”

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Collaborative for Children has so many facets to assist children with their early development, but there are inherent challenges when attempting to reach their target audience in low-income and marginalized communities that the organization counters with programs like the Collab Lab, which is a mobile classroom that brings critical, future-focused early childhood education directly to the community at no cost.

Designed to be convenient for families, Collab Lab connects parents and their youngest children with experts, educators, resources, and proven programs whose goal is to make sure that kids have the skills essential to learning from the moment they walk into kindergarten for the first time.

“There are a myriad of challenges in these communities that we serve, specifically with technology,” says Johnson. “When children enter first grade, and especially second grade, they're given notepads, basically, digital notepads, because it's no good in pre-K oftentimes, but it is very helpful for children who will never have access or have limited access to iPads and things of that nature.

“So while we don't want them to be babysat by screen time and have social media impacting their self-image and self-worth, we definitely want them to have appropriate doses and appropriate uses of technology in the early education, so that those barriers that their parents face with limited means, that these children can go to first grade and into the robotics class and be able to be evaluated and assessed on the digital notepads that are required nowadays,” she continues.

While technology is very important, Collaborative for Children also focuses on the critical social and emotional skills children need as they develop and the all too important relationship between children and their parents and teachers.

“Theory leads our work,” says Johnson. “It's all focused on fine motor skills, gross motor skills, social emotional, can a child build rapport with their teacher and with the students around them. Those things are paramount and will never change.

“What we use technology to do is enhance and remove biases from teacher-pupil interaction, but also to bridge any kind of divide in terms of 21st century skills. And in addition to that, we engage the families. So families who might not know about hydro-fueled cars in those communities that we serve will be able to be exposed to those concepts, as well through our group connections or parent partnerships.”

Ultimately, the last thing Collaborative for Children wants is to send children from early learning and childcare environments into the K-12 system unprepared to be successful for the real world.

“At Collaborative for Children,” adds Johnson. “We are continuously pushing the envelope at our Centers for Excellence so that the children that we serve will always be on the cutting edge.

The last thing Collaborative for Children wants is to send children from early learning and childcare environments into the K-12 system unprepared to be successful for the real world. Photo courtesy of Collaborative for Children

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Houston startup debuts new drone for first responders

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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.

Rice research explores how shopping data could reshape credit scores

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More than a billion people worldwide can’t access credit cards or loans because they lack a traditional credit score. Without a formal borrowing history, banks often view them as unreliable and risky. To reach these borrowers, lenders have begun experimenting with alternative signals of financial reliability, such as consistent utility or mobile phone payments.

New research from Rice Business builds on that approach. Previous work by assistant professor of marketing Jung Youn Lee showed that everyday data like grocery store receipts can help expand access to credit and support upward mobility. Her latest study extends this insight, using broader consumer spending patterns to explore how alternative credit scores could be created for people with no credit history.

Forthcoming in the Journal of Marketing Research, the study finds that when lenders use data from daily purchases — at grocery, pharmacy, and home improvement stores — credit card approval rates rise. The findings give lenders a powerful new tool to connect the unbanked to credit, laying the foundation for long-term financial security and stronger local economies.

Turning Shopping Habits into Credit Data

To test the impact of retail transaction data on credit card approval rates, the researchers partnered with a Peruvian company that owns both retail businesses and a credit card issuer. In Peru, only 22% of people report borrowing money from a formal financial institution or using a mobile money account.

The team combined three sets of data: credit card applications from the company, loyalty card transactions, and individuals’ credit histories from Peru’s financial regulatory authority. The company’s point-of-sale data included the types of items purchased, how customers paid, and whether they bought sale items.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says.

The final sample included 46,039 credit card applicants who had received a single credit decision, had no delinquent loans, and made at least one purchase between January 2021 and May 2022. Of these, 62% had a credit history and 38% did not.

Using this data, the researchers built an algorithm that generated credit scores based on retail purchases and predicted repayment behavior in the six months following the application. They then simulated credit card approval decisions.

Retail Scores Boost Approvals, Reduce Defaults

The researchers found that using retail purchase data to build credit scores for people without traditional credit histories significantly increased their chances of approval. Certain shopping behaviors — such as seeking out sale items — were linked to greater reliability as borrowers.

For lenders using a fixed credit score threshold, approval rates rose from 15.5% to 47.8%. Lenders basing decisions on a target loan default rate also saw approvals rise, from 15.6% to 31.3%.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says. “This approach benefits unbanked applicants regardless of a lender’s specific goals — though the size of the benefit may vary.”

Applicants without credit histories who were approved using the retail-based credit score were also more likely to repay their loans, indicating genuine creditworthiness. Among first-time borrowers, the default rate dropped from 4.74% to 3.31% when lenders incorporated retail data into their decisions and kept approval rates constant.

For applicants with existing credit histories, the opposite was true: approval rates fell slightly, from 87.5% to 84.5%, as the new model more effectively screened out high-risk applicants.

Expanding Access, Managing Risk

The study offers clear takeaways for banks and credit card companies. Lenders who want to approve more applications without taking on too much risk can use parts of the researchers’ model to design their own credit scoring tools based on customers’ shopping habits.

Still, Lee says, the process must be transparent. Consumers should know how their spending data might be used and decide for themselves whether the potential benefits outweigh privacy concerns. That means lenders must clearly communicate how data is collected, stored, and protected—and ensure customers can opt in with informed consent.

Banks should also keep a close eye on first-time borrowers to make sure they’re using credit responsibly. “Proactive customer management is crucial,” Lee says. That might mean starting people off with lower credit limits and raising them gradually as they demonstrate good repayment behavior.

This approach can also discourage people from trying to “game the system” by changing their spending patterns temporarily to boost their retail-based credit score. Lenders can design their models to detect that kind of behavior, too.

The Future of Credit

One risk of using retail data is that lenders might unintentionally reject applicants who would have qualified under traditional criteria — say, because of one unusual purchase. Lee says banks can fine-tune their models to minimize those errors.

She also notes that the same approach could eventually be used for other types of loans, such as mortgages or auto loans. Combined with her earlier research showing that grocery purchase data can predict defaults, the findings strengthen the case that shopping behavior can reliably signal creditworthiness.

“If you tend to buy sale items, you’re more likely to be a good borrower. Or if you often buy healthy food, you’re probably more creditworthy,” Lee explains. “This idea can be applied broadly, but models should still be customized for different situations.”

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This article originally appeared on Rice Business Wisdom. Written by Deborah Lynn Blumberg

Anderson, Lee, and Yang (2025). “Who Benefits from Alternative Data for Credit Scoring? Evidence from Peru,” Journal of Marketing Research.

XSpace adds 3 Houston partners to fuel national expansion

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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.

“KDW has been shaping the commercial [real estate] landscape in Texas for years, and Pyek Financial brings deep expertise in scaling businesses and creating long‑term value,” says Byron Smith, founder of XSpace. “Their commitment to XSpace is a powerful endorsement of our model and momentum. With their resources, we’re accelerating our growth and building the foundation for nationwide expansion.”

The expansion effort will target high-growth markets, potentially including Nashville, Tennessee; Orlando, Florida; and Charlotte and Raleigh, North Carolina.

XSpace launched in Austin with a $20 million, 90,000-square-foot project featuring 106 condos. The company later added locations on Old Katy Road in Houston and at The Woodlands Town Center. A third Houston-area location is coming to the Design District.

XSpace condos range in size from 300 to 3,000 square feet. They can accommodate a variety of uses, such as a luxury-car storage space, a satellite office, or a podcasting studio.

“XSpace has tapped into a fundamental shift in how entrepreneurs and professionals want to use space,” Wilson says. “Houston is one of the best places in the country to innovate and build, and XSpace’s model is perfectly aligned with the needs of this fast‑growing, opportunity‑driven market.”