In industry, what type of new data science algorithms does one develop?
I am no data scientist, only an aspiring one for two years, moving from my background in software engineering and mathematics. So I took some courses, had some interviews, read a lot on the subject online. My opinion:

New algorithms are developed in research centers and at universities. And even then, most algorithms used in companies are already developed, and just optimized even more.
Don't get your hopes up or be afraid that you have to reinvent gradient descent backpropagation.

With developing algorithms they most likely mean data extraction, data cleaning, data preparation for reporting statistics and presenting graphs. Maybe programmatically, maybe just using tooling.

The presented data may give more insights in simple relations in the domain, and maybe insights in more complex questions that can be asked. 

You may get to define data flows, get to compare and select machine learning algorithms and tune its parameters. And continuously evaluate model performance in practice.