Skip to content

Sometimes, an innovation makes immediate use of just one valuable insight. More often, an innovation emerges in a way that may feel sudden and violent, but in reality is the result of years of work across different fields. This quarter, the exciting innova­tions we chose are largely the latter type. Across the board, they combine progress from fields as diverse as robotics and materials science to invent ingenious new forms that build on previous advancements. What unites them is their potential to impact our world and economy far beyond their initial use cases.

Advanced new robot “dog” uses reinforcement learning to do parkour

A team at Carnegie Mellon University recently created a robotic dog that jumps up blocks twice its height, deals with tricky terrain and can rove freely.1 Reinforcement learning, a technique that uses artificial intelligence (AI) to mimic how humans learn, enables this new robot dog to respond dynamically to its environment.

Why it matters: Researchers have changed focus to how a robot’s “mind” can learn to perform new actions with its body. As a result, robots are increasingly agile and responsive to their environments. This shift in approach may allow robots to learn how to perform basic daily tasks on our behalf.

New AI model can predict how proteins change in interactions with molecules

The first version of AlphaFold, a protein structure predictor, came out in 2020. In 2024, AlphaFold was updated in a major breakthrough—it can now predict the structures of proteins during interactions with other molecules with startling accuracy.2

Why it matters: The developers of AlphaFold hope to increase the power of the technology. The goal is to predict the structure of the >100,000 proteins in our bodies both by themselves and in interactions. If achieved, this would be a foundational advancement for drug discovery, moving it from the lab onto the computer.

Exhibit 1: Illustration of Protein Structure

Using artificial intelligence to predict protein structures is a foundational advancement for drug discovery

For illustrative purposes only.

Yeast-like bacteria found to digest carbon and produce ethanol

One of the answers to climate change may have been found in rabbit feces—the bacterium clostridum autoethanogenum.3 Like yeast, which eats sugar to make ethanol, this bacterium eats gaseous carbon and produces ethanol. One company is capturing waste carbon emissions from steel plants and placing them in a bioreactor with the bacteria.

Why it matters: The climate benefit of this innovation is twofold. First, these bacteria could produce a 30% drop in carbon emissions for steel plants, an industry responsible for 11% of global emissions. Second, the resulting ethanol can be used to make aviation fuel with 85% less carbon emissions.4

Researchers invent a shapeshifting robot

A new miniature robot that can change from liquid to solid takes its inspiration from the flexible sea cucumber.5 By embedding magnetic particles within the metal gallium, researchers built a robot with similar flexibility. It can jump up to 20 times its body length, climb walls, and even escape from a mock prison.

Why it matters: Although it is early, this new robot shows promise in biomedical applications. For instance, it could be used to remove a coin from a human stomach. Beyond medicine, it may be able to help assemble and repair hard-to-reach circuits or even act as a universal screw.

Advances in geothermal energy may help curb carbon emissions

New ideas to solve old problems can be found in the most unlikely of places. In this case, geothermal energy, one of the most promising forms of renewable energy, has emerged as a new application for hydraulic fracking.6 Solid stone at unprecedented depth is cracked, and water is injected. This produces steam, which drives turbines to produce electricity for the grid.

Why it matters: Today, less than 1% of energy is geothermal. But, geothermal energy, like fossil fuels, doesn’t vary with weather conditions or time of day, a major limiting factor for other renewable energy technologies. This means it could power the grid when other renewables are less available.



Copyright ©2025. Franklin Templeton. All rights reserved.

This document is intended to be of general interest only. This document should not be construed as individual investment advice or offer or solicitation to buy, sell or hold any shares of fund. The information provided for any individual security mentioned is not a sufficient basis upon which to make an investment decision. Investments involves risks. Value of investments may go up as well as down and past performance is not an indicator or a guarantee of future performance. The investment returns are calculated on NAV to NAV basis, taking into account of reinvestments and capital gain or loss. The investment returns are denominated in stated currency, which may be a foreign currency other than USD and HKD (“other foreign currency”). US/HK dollar-based investors are therefore exposed to fluctuations in the US/HK dollar / other foreign currency exchange rate. Please refer to the offering documents for further details, including the risk factors.

The data, comments, opinions, estimates and other information contained herein may be subject to change without notice. There is no guarantee that an investment product will meet its objective and any forecasts expressed will be realized. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where an investment product invests in emerging markets, the risks can be greater than in developed markets. Where an investment product invests in derivative instruments, this entails specific risks that may increase the risk profile of the investment product. Where an investment product invests in a specific sector or geographical area, the returns may be more volatile than a more diversified investment product. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from use of this document or any comment, opinion or estimate herein. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any share class with “(Hedged)” in its name will attempt to hedge the currency risk between the base currency of the Fund and the currency of the share class, although there can be no guarantee that it will be successful in doing so. In some cases, investors may be subject to additional risks.

Please contact your financial advisor if you are in doubt of any information contained herein.

For UCITS funds only: In addition, a summary of investor rights is available from here. The fund(s)/ sub-fund(s) are notified for marketing in various regions under the UCITS Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

For AIFMD funds only: In addition, a summary of investor rights is available from here. The fund(s)/ sub-fund(s) are notified for marketing in various regions under the AIFMD Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 32a of the AIFMD Directive.

For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).

This document is issued by Franklin Templeton Investments (Asia) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Unless stated otherwise, all information is as of the date stated above. Source: Franklin Templeton.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.