Flyby Newsletter
May 27, 2025

Innovation budgets rising again

Innovation is scaling up and getting smarter. Budgets are growing, with AI, clean energy, and cybersecurity leading strategic investments. Retail is going experiential, logistics is going robotic, and farming is going precision-first. Chinese EV makers are accelerating global competition, while leaders tackle technical debt and rethink strategy with roll-up models. 2025 is about bold moves and better execution .

(Est. reading time: 5 mins)

Hey there 👋

It's time for another 🛰️ FounderNest Flyby Newsletter 🛰️, where we help you stay sharp with innovation trends and insights.

In today’s newsletter:

  • 💡 Thoughts from our blog
  • 🗞️ Quick hits from this week’s news
  • 📡 5 emerging trends from our industry radar
  • 💼 This week’s retail and logistics deep dive
  • 🎨 Infographic showing where innovation budgets are shifting

(Est. reading time: 5 mins)

Thoughts from our blog.

Quick hits.

Short and sweet - news that caught our eye this week.

💰 Innovation budgets rising again: Despite economic uncertainty, innovation budgets are increasing, especially in AI, clean energy, and high-ROI solutions. More than a third of businesses are now spending 8% or more of revenue on innovation.

🏢 World’s most innovative companies: Fast Company’s 2025 list highlights companies like Waymo, recognized for their pioneering work across sectors, demonstrating how innovation teams can drive industry leadership.

🚫 Technical debt and innovation bottlenecks: As organizations rapidly adopt new technologies, managing technical debt, outdated systems and processes remains a challenge. Innovation teams are increasingly tasked with not just creating new solutions, but also modernizing legacy infrastructure to enable agility and sustained growth.

Industry radar.

Stay ahead of the curve every newsletter we give you 5 of the hottest topics and trends across our reference industries.

1. Oil and energy: AI, IoT, and data analytics Integration

Oil and gas companies are rapidly adopting digital tools to optimize operations. AI-powered maintenance is reducing equipment downtime by up to 30%, while IoT-enabled rigs and cloud platforms are enhancing real-time monitoring, resource allocation, and global team productivity. Predictive analytics and digital twins are enabling smarter decision-making, cost savings, and improved safety.

2. Food and beverages: Kraft Heinz $3 Billion US investment

Kraft Heinz announced a $3 billion investment to modernize its 30 US manufacturing sites, focusing on efficiency, automation, and innovation.

3. Retail and logistics: Robotic and sustainable last-mile delivery

Robotic delivery is scaling up, with DoorDash and Coco Robotics expanding emissions-free sidewalk robot deliveries in major US cities. These robots provide sustainable, convenient access to goods from hundreds of retailers, reflecting a broader push for eco-friendly logistics solutions.

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A sample of robotic and sustainable last-mile delivery companies in FounderNest

4. Farming and agriculture: Precision agriculture

Precision farming techniques, such as GPS-guided equipment and soil sensors, are helping farmers target specific field areas for input application. This reduces waste, cuts costs, and minimizes environmental impact. Around 57% of UK farmers are now using precision agriculture, reflecting its rapid adoption.

5. Automotive: strategic Partnerships and market expansion

Chinese OEMs are expanding into European EV manufacturing, increasing competition and innovation in the region.

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Deep dive: Retail and logistics.

Comprehensive, personalized industry insights - straight from our platform.

TL;DR

  • 🛍️ Immersive, experiential retail and hybrid shopping models are redefining the customer journey
  • 🤖 AI-driven personalization, automation, and robotics are transforming operations and logistics
  • 🌱 Sustainability, circular fashion, and conscious consumption are now mainstream imperatives

1. 🛍️ Immersive retail: Experience over transaction

Physical retail is being reinvented as a destination. Flagship stores and pop-ups, such as Celine’s Zhangyuan in Shanghai and Golden Goose’s “Co-Creation Bar” in New York, are blending shopping with entertainment, personalization, and lifestyle experiences. These immersive spaces drive foot traffic, deepen brand loyalty, and create memorable moments that can’t be replicated online. Brands are also leveraging architectural sophistication and themed environments to stand out in a crowded market.

2. 🤖 Automation and AI: The tech-driven revolution

AI is powering hyper-personalization, dynamic pricing, and targeted promotions, while robotics and automation streamline logistics and in-store operations. Robotic last-mile delivery - like DoorDash and Coco Robotics’ emissions-free robots in US cities offers sustainable, convenient fulfillment. AI-driven demand forecasting and inventory optimization help retailers respond rapidly to shifts in consumer behavior, reduce waste, and improve margins.

3.  🌱 Sustainability: Conscious consumption goes mainstream

Second-hand and rental fashion has become a core retail segment, with mainstream retailers expanding partnerships and in-house offerings. Searches for “pre-loved fashion” have surged, and platforms like By Rotation and John Lewis’s consignment tie-ups are meeting demand for more sustainable, affordable options. Circular business models and transparent supply chains are now essential for both regulatory compliance and customer trust.

Summary

The retail and logistics industry in 2025 is defined by bold innovation, tech-powered personalization, and a relentless focus on seamless, sustainable customer experiences. Retailers that blend immersive physical spaces with digital convenience, embrace automation, and prioritize conscious consumption are best positioned to thrive in this dynamic landscape.

Find the full research here.

Where innovation budgets are shifting in 2025.

In 2025, innovation budgets are shifting towards strategic, high-impact areas aligned with global priorities such as clean energy, AI, and cybersecurity. Organizations are focusing on practical AI applications across industries like manufacturing, healthcare, defense, and insurance, aiming for faster, measurable outcomes in innovation spending.

Here is a quick summary:

  • Increased investment in clean energy and climate tech
  • Practical AI implementations to boost productivity and competitiveness
  • Enhanced cybersecurity technologies to counter evolving threats
  • Use of AI and generative AI in manufacturing and healthcare
  • Advanced tech adoption in defense and insurance sectors
  • Pressure on innovation teams for faster, outcome-driven results
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Thanks for reading! If you want to explore the space for yourself, or any others, you can run your own search directly in FounderNest.

Feel free to suggest a topic for us to dive into next! If you have any questions, feedback, or just want to connect you can get in touch or connect on LinkedIn.

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