Innovations that impact the economies far beyond initial use cases

This article was produced in partnership with Franklin Templeton

Across industries, the pace of technological advancement is accelerating, pushing boundaries and creating new opportunities that were once unimaginable. The 2024 third quarter’s Innovation Insights from Franklin Equity Group highlights five groundbreaking innovations that exemplify the power of interdisciplinary progress, combining developments in fields as diverse as robotics, artificial intelligence, and materials science.

Breakthroughs that define the future

One of the most striking examples of this innovation-driven growth is the recent development of a robotic dog¹ by a team at Carnegie Mellon University. This robot, equipped with advanced reinforcement learning capabilities, can navigate complex terrains and perform parkour-like maneuvers, showcasing the potential of intelligent machines. As machines are learning to interact with the world in increasingly human-like ways, robots can potentially address issues before they arise in retail and manufacturing and industrial settings.

The implications of this are significant, according to Matt Moberg, senior vice president and portfolio manager with Franklin Equity Group, who leads a team that focuses on investing in innovation. As robots become more agile and responsive, their applications in everyday life expand, they go from being reactive to proactive. From assisting in disaster recovery to performing routine household tasks, the future where robots are seamlessly integrated into our lives is closer than ever.

The tip of the iceberg

In the realm of biotechnology, Franklin Equity Group shines a spotlight on the updated AlphaFold AI model. Originally launched in 2020, this model has now been enhanced to predict the structures of proteins during interactions with other molecules with stunning accuracy2. This advancement is set to revolutionize drug discovery by shifting much of the research from the laboratory to the computer, speeding up the development of new treatments and potentially saving countless lives.

These innovations are just the tip of the iceberg. In a surprising twist, researchers have discovered a bacterium, Clostridium autoethanogenum, found in rabbit feces that could play a pivotal role in reducing global carbon emissions³. This bacterium consumes gaseous carbon and produces ethanol, a process that could significantly lower emissions from steel plants and create cleaner aviation fuel.

Geothermal energy and beyond

Moberg also points to the potential of geothermal energy, which has emerged as a reliable and renewable energy source. By applying hydraulic fracking techniques to deep geothermal wells, engineers can now access energy that is not dependent on weather conditions or time of day, making it a consistent power source for the grid. This advancement could be crucial in reducing our reliance on fossil fuels and curbing carbon emissions, positioning geothermal energy as a key player in the transition to a sustainable future.

Franklin Templeton’s ability to identify and invest in these areas of growth underscores the importance of staying ahead of the curve. By focusing on key themes such as energy transformation, intelligent machines, and genomic advancements, the Franklin Innovation Fund – ETF series (FINO) aims to enable investors to capitalize on the potentially immense opportunities that lie ahead.

In the words of Matt Moberg and the Franklin Equity Group, the future of innovation is bright, and the potential for creating long-term wealth has never been greater.

Citations

1. Source: Heikkila, M. “Is robotics about to have its own ChatGPT moment?” MIT Technology Review. April 11, 2024.
2. Source: Callaway, E. “Major AlphaFold upgrade offers boost for drug discovery.” Nature. May 8, 2024.
3. Source: Khan, Y. “A Yeast-Like Bacteria Can Cut Carbon Emissions While Creating Sustainable Aviation Fuel and Sneakers.” The Wall Street Journal. May 1, 2024.

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