Released on 26th September 2017, the eighth annual study from Clarivate Analytics shows how the cosmetics and wellbeing, and biotechnology industries, have experienced a slower growth rate. Year-over-year research and patent activity were analysed across these two industries, along with ten others.
The 2017 State of Innovation findings exhibits how this year there is an 8% growth in patent filings, which is down from 14% in 2016.
Despite this slowdown, the volume of patents is currently on an “upward trajectory”, as the report indicates that more than 2.6 million were published in 2016.
China’s economic impact
This slowed rate was largely put down to China, which now comprises over 60% of patented inventions around the globe.
In China, there has been a 9% year-over-year growth from 2015 to 2016, compared to a 25% rise between 2014 and 2015.
In a recent press release, Clarivate Analytics suggests this may be down to stagnant economic growth in the country. Lowered R&D investment from an estimated gross domestic expenditure on R&D growth of 8.5% in 2016 compared to 8.9% in 2015, has also been identified as a potential cause for the drop.
Slow but not stopped
"While it is undeniable that innovation growth has slowed, it has not stalled out," stated Jay Nadler, CEO of Clarivate Analytics.
"Innovation remains on an upward trajectory, which is why we consistently benchmark innovation with concrete metrics to gain a clear look into the future," added Nadler.
The Information Technology and Innovation Foundation (ITIF), states that it is innovation that drives economic growth.
To assist these industry innovations, R&D activities enable “scientists and researchers to gather new knowledge, techniques and technologies” that can then be used to help creators develop the same item with similar or fewer resources. This, in turn, leads to innovation. Research indicates that a 1% rise in R&D spending lifts the economy by 0.61%.
Skin care leads cosmetics innovation
Innovation driven by the consumables sectors such as cosmetics and life sciences including biotech and pharma are leading sectors and driving forces behind innovation.
Within the cosmetics and wellbeing space, innovation in patents and research is up by 23% and 18% respectively.
In 2017, new cosmetic compositions, soaps, face masks and treatments for skin conditions, known as cosmeceuticals, dominate the marketplace. Also, this year, there has been a rise in traditional Chinese medicine applications in the cosmetics and wellbeing areas.
The report outlines how natural wrinkle-resisting skin rejuvenating Chinese angelica skin care product is described in CN105796463A and lists helping to improve sleep quality as a key benefit.
L’Oreal leads in the innovation stakes, as it reclaims its title as the “most globally active innovator” in the space. The French cosmetics company has 1,511 inventions — five times the number of those of the number two spot, Procter & Gamble, which has 333 inventions.
South Korean conglomerate, LG Household and Healthcare, which was last year’s frontrunner, has now slipped into fourth place.
However, Japan, South Korea, and China all feature in the top 10 innovative organisations, with each country having two native companies make the list, along with India, which has one.
Innovative cosmetics focus on nature
The 2017 State of Innovation Report: The Relentless Desire to Advance reveals that skin care-related technology, the largest subsector, is the leading cosmetics and wellbeing innovator, contributing to 42% of these innovations. Make up follows with 37% of creations, in front of 16% for hair, and then 2% in the perfume and antiperspirant segments, respectively.
"Driven by legal and consumer pressure, reformulation of skin care and cosmetics will increase dramatically over the next few years: market leaders in this sector will be those finding the balance between cosmetic effectiveness and environmental awareness," announced Peta Leggatt, Technology and Policy Expert, Clarivate Analytics.
With natural elements high on the cosmetics industry agenda, Leggatt went on to point out: “As development accelerates and compositions become more environmentally friendly, biopolymer and naturally derived alternatives will soon be as ubiquitous as the polluting plastic microbeads they replace."