Building External Innovation Ecosystems For Real Business Impact in Beauty Tech & Beyond

The evolution of Beauty Tech is being shaped by diverse innovation strategies, some rooted in scientific formulation, others in engineering excellence. L’Oréal exemplifies how deep formulation expertise, when paired with strategic technology partnerships, can drive transformative innovation. Collaborations with NVIDIA and IBM have enabled L’Oréal to build a sophisticated AI-powered ecosystem that enhances personalisation, marketing, and product development. Its generative AI platform, CREAITECH, leverages NVIDIA’s AI Enterprise to scale 3D rendering and hyper-personalised campaigns [9], while its AI marketplace start-up, Noli, uses data from over a million skin profiles and thousands of product formulations to match consumers with ideal products [6]. IBM’s support further strengthens sustainable formulation and digital transformation efforts [11].

Meanwhile, Dyson and SharkNinja have carved distinct paths into Beauty Tech by applying advanced

engineering and design to consumer styling tools. Their focus has been primarily on hair care devices, with products like the Dyson Airwrap and Shark FlexStyle showcasing hardware innovation and user-centric design. SharkNinja has recently expanded into skincare technology, launching LED-based facial devices and cryotherapy masks [15], while Dyson has remained exclusively within the hair care domain. These differing trajectories reflect the diversity of entry points into Beauty Tech, some led by chemistry and biology, others by mechanical and design innovation.

Importantly, both companies are beginning to engage with innovation ecosystems, albeit in different ways. Dyson has built a robust internal R&D ecosystem, investing £500 million into beauty technology and establishing global research labs focused on hair science [3]. Its recent move into formulation with Chitosan™ styling products, developed from mushroom-derived ingredients, signals a potential shift toward external collaboration in sustainable materials and biotech [20]. SharkNinja, on the other hand, is actively cultivating an external innovation ecosystem through initiatives like the SharkNinja Innovation Challenge, in partnership with MassChallenge, which supports start-ups and university-led innovation [10].

Together, these examples underscore the importance of complementary capabilities in ecosystem building. L’Oréal’s success illustrates the power of integrating scientific formulation with cutting-edge technology, while Dyson and SharkNinja demonstrate how engineering-led innovation can open new consumer experiences. A thriving Beauty Tech ecosystem benefits from both approaches and is strongest when cross-disciplinary collaboration bridges these domains to meet evolving consumer needs.

Looking ahead, the strategic question is not whether Dyson and SharkNinja will expand into formulations, but whether they can compete effectively in a category increasingly shaped by biotech, dermatological science, and AI-driven personalisation. 

r continued success may depend on their ability to build or join external innovation ecosystems, partnering with ingredient labs, academic institutions, and agile start-ups to fill capability gaps and unlock new value streams. In a sector where consumer trust and scientific credibility are paramount, ecosystem orchestration could be the key differentiator. These varied approaches reflect the broader reality explored throughout this article: that successful innovation in Beauty Tech increasingly depends not just on internal capabilities, but on the ability to build and orchestrate external ecosystems tailored to each company’s unique strengths. Whether in formulation, engineering, or consumer experience.

One of the biggest reasons external innovation ecosystems underperform is that they lack clear success metrics. Companies set up ecosystems with great enthusiasm but often without robust measurement. Measuring ecosystem success is more complex than tracking standard R&D KPIs, because value is multi-dimensional. Beyond financial metrics, incremental revenue, patent portfolios and R&D efficiency, it is also important to assess partner retention and engagement, ecosystem vitality via joint projects and innovation outputs, and enhanced market reputation [13]. In Beauty Tech, where consumer trust is paramount, reputation gains from influential partners can drive brand loyalty and commercial growth [5].

Implementing ecosystems entails challenges, especially intellectual property disputes, contract complexity, and strategic misalignments between partners. Additionally, ecosystems risk becoming superficial “collaboration theatre,” valued more for PR than product impact [16].

Ecosystem leaders mitigate risks by starting small, piloting high-potential partnerships, and employing agile governance to pivot based on real-world learning [17].

Practical Recommendations for Leaders Building Innovation Ecosystems:

• Tie ecosystem initiatives explicitly to the company vision to maintain focus.
• Build diverse partner mixes including startups, academia, suppliers, investors, and regulators to spark broad innovation.
• Develop governance frameworks balancing clarity and agility with strong trust-building practices.
• Invest in infrastructure, labs, digital, and legal, to support sustained collaboration.
• Measure outcomes on financial and relational metrics, continuously iterating on strategy.
• Foster an experimental mindset with rapid pilots, embracing fast failure over inertia.
• Keep the ecosystem adaptive, evolving with technology and market shift.