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How is innovation born at Amazon?

Nigar Sultanli
20 November 2025 10:35
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How is innovation born at Amazon?

Today marks the first day of Plug and Play Summit 2025.
Even the air in Sunnyvale feels different — although it rained yesterday, this morning welcomes us with bright sunshine. It’s as if breathing in Silicon Valley spreads a scent of innovation. At the entrance, hundreds of people stream inside: investors, startup founders, corporate innovation leads, professors… and above all, AI engineers.

The moment you step in, one reality hits you:

300+ startups, 200+ AI companies gathered under one roof.
Wherever you stand, someone is talking about agentic AI, robotics, or industrial LLM applications. Every table has a demo, every hallway has a pitch — it truly feels like a tech carnival. One startup is doing predictive farming in agriculture. Next to it, another is showcasing AI diagnostics for cancer treatment. In another corner, a humanoid robot is learning navigation.

As StartupEvents wrote, Plug and Play this year isn’t just about “tech” — it has expanded into every sector:

Agtech – sensor AI for micro-analysis of soil

Fintech – real-time fraud detection

Deeptech – quantum, robotics, new materials

Healthtech – remote diagnostics, bio-AI

Energy – grid optimization, sustainability

Supply Chain – end-to-end visibility

Mobility – autonomous vehicles, pilotless systems, co-pilot AI

Real Estate & Construction – digital twins, smart materials

In one hall, a fintech startup is pitching to investors; from another hall you hear the whirring of robots. It feels like 17 different futures are living in the same building. Panels and keynotes revolve around the main question: “Where are we heading?” Every speaker on stage repeats the same three words: Innovation. Investment. Future.

According to Plug and Play’s own website, this year’s opening speeches are noticeably more serious — the world is entering the AI race at full speed, and everyone is trying to understand the new rules. The discussions highlight:

Industrial transformation powered by AI

Real integration challenges

Corporate transitions to AI-driven systems

Balancing innovation and risk

Capital’s new direction: “investment in intelligence”

The room is filled with so many international experts that at times it feels like a UN conference.

How Amazon Builds Innovation

When Franziska Grosser (Head of Amazon’s $1B Industrial Innovation Fund | Director of Corporate Development) took the stage, one thing became very clear: Amazon’s strength isn’t only in robots, AI, or massive investments. Their real strength is a culture that deeply understands the problem, agile collaboration, and teams that complement each other.

I asked myself: Why is Amazon always ahead?
The answer is simple: They see the problem from the inside.
Starting from the customer is their “secret password.”

“At Amazon, innovation doesn’t start with technology. It starts with a customer’s pain point. Everything we do is Working Backwards.”

This resonated with me — technology has value only when a real problem exists.

Startup Agility + Amazon Scale = Powerful Synergy

Listening to Franziska, it became clear why large companies are often slow —
but Amazon breaks this rule.

Because:

Internal teams are incredibly strong

Startups are incredibly fast

Franziska put it very honestly:

“We complete startups, and they complete us.”

This line struck me because true innovation never happens alone.

The Innovation Challenge — opening the problem to the world

Amazon doesn’t hide problems — they open them, and look for solutions globally. Their process is simple but incredibly powerful:

Problem defined

Startups selected

Direct meetings with leaders

On-site observation

Only solutions that work go to pilot

Portfolio Day — innovation breathing

Imagine this:

  • All portfolio startups fly to Seattle
  • 100+ Amazon leaders talk to them face-to-face
  • Solutions are demonstrated directly to the teams who need them
  • There’s no “show element” at all. Just real problems, real people, real results.

Franziska’s strongest statement:

“We don’t innovate for the showcase.”

How I now see Amazon’s innovation mindset

  1. Start from the problem
  2. Bring the ecosystem inside
  3. Unite teams
  4. Test in the real world
  5. Accept nothing that can’t scale

And the most powerful principle:

“No big company builds innovation alone.”

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