Recent Brazilian Governments have provided incentives to support domestic innovation; however, some claim that the country has set conflicting policies towards innovation, industrial property and biodiversity exploitation. After an analysis of patent applications filled in the Brazilian National Institute of Industrial Property, we observed that current governmental measures have not performed as expected, at least in the skin care industry. Throughout the paper we discuss plausible reasons why this sector has not managed to innovate more, reasons that may affect other businesses as well. This case is exemplary to developing economies that have implemented or are in the process of renewing their innovation policies.