We’re a few weeks into 2025, and the year is already proving to be transformative for innovators around the world. Donald Trump took office and swiftly began ripping up the Biden administration’s economic playbook, starting by banning all new wind energy projects for an indefinite period. The Trump administration’s actions prompted investors to declare the death of Environmental, Social, and Governance (ESG) initiatives, and ESG innovation along with it.
But is throwing out the last four years of cleantech work the right call? Innovation leaders should prioritize these critical strategies instead:
1. Fuel Innovation with Customer Centricity: The transition from a technology-first mindset to a human-centric and policy-centric approach is crucial to drive innovation that resonates with the ultimate end-user. Without consumer demand, even the most advanced technologies risk irrelevance.
2. Reimagine the Innovation Factory Across the Organization: Our research shows that corporate R&D should evolve from a cost center to a profit center. A hybrid approach, where the corporate R&D department works closely with business units but retains its own strategic oversight, can optimize this transformation.
3. Engineer an Innovation Roadmap the CEO Believes In: While budget cuts may improve short-term financials, they often halt progress, demoralize teams, and stall innovation. Sustainable growth requires leaders to commit to a long-term innovation strategy that inspires confidence and delivers results.
As we navigate an uncertain 2025, it’s clear that tackling complex challenges like climate change, economic volatility, and the AI revolution demands evolved thinking and deliberate planning. Innovation remains the key to turning these challenges into opportunities for growth.
To prepare your organization for the road ahead, explore Lux’s full report: “Three Things Innovation Leaders Must Do in 2025.”
