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Innovation Insights Quarterly: Q4 2026

This quarter’s spotlight reveals how innovation’s biggest opportunities often emerge beyond its original field, with breakthroughs in one area increasingly driving transformation across industries.

Franklin Equity

Published date

October 21, 2026

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Sometimes, innovations realize their biggest impact outside the field that produced them. From advances in materials science that enhance electric vehicle batteries, to autonomous flights that could reshape traditional logistics, this quarter’s selections show how innovation in one field can unlock new possibilities in another. 

The Brain Found to Be Two Organs, Not One

Researchers found that the brain is comprised of two distinct organs that evolved independently and later became intertwined. From a functionality standpoint, the forebrain is heavily involved in thinking and decision-making, while the hindbrain helps control movement and basic capabilities such as breathing and swallowing. Because scientists had long assumed that these parts of the brain shared a common starting point, attempts to grow hindbrain nerve cells in the lab failed, as they used the wrong precursor cells. Using the correct starting cells, the researchers successfully grew working human hindbrain nerve cells from stem cells.1

Why it matters: Growing hindbrain cells could make it easier to study diseases such as ALS, which damage the nerve cells that control movement.2 The CDC projects that about 34,720 US adults will be living with ALS in 2026.3 A reliable supply of these cells could help researchers study how the disease progresses and test potential treatments.

Two Brains Are Better Than One

A new study led by Stanford Medicine found the brain is two separate organs adjacent to one another. The finding could aid research into devastating neurological diseases.

For illustrative purposes only.

Autonomous Plane Completes First Cross-Country Flight

An electric aviation company reported that an aircraft, retrofitted with its self-flying technology, flew across the United States with no intervention from the onboard safety pilot. The system handled every major stage of the trip, from taxiing and takeoff to navigation and landing, under remote supervision. Notably, it did this on an existing aircraft, showing that autonomy can be added to planes already in service rather than requiring an entirely new design.4

Why it matters: Air cargo represents less than 1% of global trade by weight but close to one-third by value, reflecting its importance for products where speed and reliability matter most.5 Autonomous aircraft could change how valuable and time-sensitive goods move around the world. The ability to complete long flights autonomously opens a new path for making this critical transportation network more flexible.

New Extraction Process Unlocks Lithium

Researchers have developed a process for refining spodumene, a common hard-rock source of lithium. Traditional methods roast the mineral at more than 1,000°C,6 while the new process soaks it in a 

reusable chemical bath at temperatures below 100°C.7 The new process breaks it apart. Along with lithium suitable for batteries, the process also produces the usable byproducts alumina and silica.8

Why it matters: Lithium is a key ingredient in the rechargeable batteries that power electric vehicles, phones and laptops. These batteries are also playing an increasingly important role in storing electricity for the grid. The International Energy Agency (IEA) projects global lithium demand to triple by 2035, but currently announced mining projects are projected to supply only about 60% of what's needed.9 If the new process holds up at industrial scale, it could widen the pool of lithium resources that can be produced economically as demand continues to rise.

Robot Draws Your Blood

The US Food and Drug Administration has authorized a robotic device that can complete a standard blood draw without a human placing the needle. Today, however, a trained phlebotomist, the specialist who normally performs blood draws, is still required to supervise. The robot uses near-infrared imaging and ultrasound to choose a suitable vein, then automatically applies the tourniquet, prepares the skin, inserts the needle, changes the collection tube and places the bandage.10

Why it matters: One phlebotomist can oversee as many as three devices, turning a repetitive procedure into a supervised workflow rather than a one-worker-per-patient task.11 This development is particularly striking because a 2025 Microsoft study placed phlebotomists last in a ranking of professions most vulnerable to AI replacement, since drawing blood is a hands-on activity.12

Paint Cools Without Power

Researchers have developed a new class of paint coatings that can keep surfaces cooler by reflecting sunlight and releasing heat as infrared radiation. The result is a surface that stays cooler without using any electricity. One coating keeps surfaces about 8°C (roughly 14°F) cooler than ordinary white paint by reflecting 93% of sunlight, compared with 84% for standard commercial paint.13

Why it matters: If these coatings can be made cheap and durable, they could be applied to roofs and exterior walls that take the brunt of the sun, easing the load on air conditioners. That matters because the IEA estimates that air conditioners and electric fans account for nearly 20% of the electricity used in buildings worldwide.14 Given how much of the world's building electricity already goes to cooling, coatings that lower that demand could ease pressure on power grids and reduce energy costs on a global scale.

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Endnotes

 

  1. Source: Krista Conger, "The Human Brain Is Two Separate Organs, Study Finds," Stanford Report, September 18, 2026.
  2. Source: Conger, "Human Brain Is Two Separate Organs."
  3. Source: Centers for Disease Control and Prevention, "National ALS Registry Dashboard," last reviewed June 25, 2026.
  4. Source: Joby Aviation, "Joby Completes First-Ever Fully Autonomous Flight across the United States," press release, September 18, 2026.
  5. Source: International Air Transport Association, "Cargo," accessed October 5, 2026.
  6. Source: Zach Winn, "MIT Researchers Develop a Low-Cost Technique to Get Lithium out of Rocks," MIT News, May 28, 2026.
  7. Source: Casey Crownhart, "How a New Extraction Process Could Unlock the World's Lithium," MIT Technology Review, May 28, 2026.
  8. Source: Crownhart, "New Extraction Process."
  9. Source: International Energy Agency, Global Critical Minerals Outlook 2025 (IEA, 2025).
  10. Source: Rob Thubron, "FDA Approves Robot That Can Find Your Vein, Insert a Needle, and Draw Blood without Human Help," TechSpot, August 20, 2026; US Food and Drug Administration, "FDA Authorizes First-of-Its-Kind, Robotic Blood Draw Device," news release, August 19, 2026.
  11. Source: US Food and Drug Administration, "Robotic Blood Draw Device."
  12. Source: Kiran Tomlinson et al., "Working with AI: Measuring the Occupational Implications of Generative AI," preprint, arXiv, July 10, 2025.
  13. Source: "How to Cool Buildings on the Cheap," The Economist, September 8, 2026.
  14. Source: International Energy Agency, The Future of Cooling: Opportunities for Energy-Efficient Air Conditioning (IEA, 2018).

 

The company examples discussed are included for illustrative purposes, selected based on the scale, visibility, and maturity of their publicly disclosed initiatives. They are intended to illustrate broader technological and economic trends, rather than to represent a comprehensive survey of participants or an assessment of relative investment attractiveness. Companies referenced are not recommendations or indications of trading intent of Franklin Templeton. No assurance can be given that any forecast, projection or prediction regarding economies or financial markets will be realized.

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