From invasive seaweed to global success: Seven lessons for Australia’s economic developers

Australia doesn’t necessarily need to manufacture more. We need to capture more value from what we already produce.

What can an invasive seaweed species, a team of scientists in Tasmania and a global biotechnology business teach us about economic development?

Quite a lot, as it turns out.

During the Economic Development Australia National Conference in Hobart, the Sparrowly Group team visited Marinova, a Tasmanian biotechnology company that has transformed an environmental challenge into an internationally recognised advanced manufacturing business.

With approximately 18 employees, exports to more than 40 countries and a highly specialised product, Marinova challenges some conventional thinking about what successful regional economic development looks like.

It doesn’t employ thousands of people. It doesn’t manufacture a mass-market consumer product. And its competitive advantage isn’t built on producing the greatest volume at the lowest cost.

Instead, its success comes from identifying a high-value opportunity, developing specialist manufacturing capabilities, investing in research and connecting innovation directly to global market demand.

For economic developers and policymakers across Australia, there are some important lessons.

From environmental problem to economic opportunity

Marinova’s story began with an unintended consequence of international trade.

During the 1980s, ships travelling from Japan to Tasmania introduced an invasive seaweed species, Undaria pinnatifida, commonly known as wakame, through ballast water.

The seaweed established itself along Tasmania’s coastline, creating an environmental management challenge.

But where others saw a problem, Marinova’s founders recognised an opportunity.

The seaweed contained fucoidan, a naturally occurring compound with potential applications in human health, nutrition, skincare and pharmaceutical research.

Rather than harvesting the seaweed as a low-value commodity, Marinova developed a specialised process to extract and refine this compound into a premium ingredient.

More than two decades later, the company is a global leader in fucoidan science and manufacturing, supplying specialist ingredients to customers around the world.

In 2025, Marinova won the International Health category at the Australian Export Awards, demonstrating that a highly specialised Tasmanian manufacturer can compete successfully on the international stage.

The story is a reminder that economic opportunities are not always created by attracting something new. Sometimes they come from recognising the unrealised value of what is already there.

So what can we learn?

1. Stop competing on volume. Start competing on value.

One of the most striking insights from our visit was the value Marinova creates from its raw material.

The team explained that its specialised fucoidan ingredients can sell for approximately $500 to $1,000 per kilogram, with highly specialised research-grade products commanding significantly higher prices.

This isn’t simply seaweed processing. It is advanced manufacturing, built around specialised technology, scientific evidence, quality assurance and intellectual property.

Marinova has deliberately positioned itself at the premium end of the market, rather than competing with lower-cost producers.

For Australia, this distinction matters.

We frequently talk about increasing agricultural output, expanding manufacturing capacity and growing exports. But producing more doesn’t necessarily mean capturing more economic value.

The opportunity is often in moving further along the value chain.

Think about the difference between exporting raw agricultural commodities and manufacturing specialist food ingredients. Or between extracting minerals and producing high-performance materials for advanced industries.

The resource might be the same, but the economic value captured can be dramatically different.

The lesson for economic developers: Look beyond what your region produces and ask what higher-value products, technologies or services could be developed from those resources.

2. Research and commercialisation need to work together

Australia is good at research. Turning that research into commercially successful products is where we often struggle.

What stood out at Marinova was how closely scientific research and commercial decision-making are connected.

The company reinvests approximately 20% of its gross annual revenue into research and development.

But research isn’t undertaken simply because something is scientifically interesting.

Potential projects are evaluated against several considerations: the strength of the scientific evidence, the size of the market opportunity, the likely cost of commercialisation and whether customers will ultimately pay for the product.

During our visit, the team described how decisions about investing hundreds of thousands of dollars in clinical trials are made collaboratively between scientific and commercial staff.

A recent example is Marinova’s clinical study involving 88 men with benign prostatic hyperplasia, a common prostate condition. The peer-reviewed study reported improvements in urinary symptoms among participants taking a particular fucoidan extract compared with placebo, providing a potential pathway for further product development and commercialisation.

The important point for economic development isn’t the specific health application. It’s the process.

Research identifies potential. Commercial assessment determines where to invest. Clinical evidence helps establish credibility. Market engagement creates a pathway to customers.

The lesson for economic developers: Stop treating research, innovation and commercialisation as separate activities. Connect researchers with industry and prospective customers early, before significant investment decisions are made.

3. Find your niche and become the best at it

One of the most interesting comments during our visit was that Marinova has repeatedly chosen not to pursue opportunities outside its core expertise.

It could develop finished consumer products or branch into other seaweed compounds.

Instead, it has remained focused on becoming a leading global supplier of high-quality fucoidan.

Its competitive advantage comes from a proprietary water-based extraction process, specialist knowledge, certified organic products, regulatory credentials and an extensive scientific research program.

The company also protects its manufacturing know-how rather than relying solely on patents.

This is an important reminder that innovation is not just about inventing products. It can be embedded in production processes, technical expertise and the ability to consistently manufacture something others cannot easily replicate.

And being highly specialised doesn’t necessarily mean having a small market.

Marinova’s customers operate across nutritional supplements, skincare, animal health and pharmaceutical research, with international demand providing opportunities well beyond the Australian market.

The lesson for economic developers: Not every region needs to pursue the same emerging industries. Identify the specialist capabilities and competitive advantages that already exist, then help businesses become exceptional within their chosen markets.

4. The circular economy can be a commercial advantage

Marinova’s approach to sustainability is integrated into its business model.

Its extraction process uses water rather than harsh chemical solvents. Its manufacturing operates on renewable electricity and the company has developed productive uses for its residual materials.

Liquid byproducts are used in agricultural and horticultural applications, while solid seaweed residues are incorporated into commercial potting mixes.

Rather than treating these materials as waste, Marinova has identified opportunities to return them to productive use.

Importantly, its environmental credentials also support its market positioning.

For customers purchasing premium ingredients, quality, traceability, certified organic status and environmental performance can all influence purchasing decisions.

This demonstrates that environmental performance and commercial competitiveness can reinforce each other.

Across regional Australia, there are opportunities to apply similar thinking to agricultural byproducts, food processing, manufacturing residues and industrial waste streams.

Of course, not every waste stream represents a commercially viable opportunity. Processing costs, transport distances and customer demand still matter.

The lesson for economic developers: Explore how existing industry byproducts can become inputs for other businesses, but test the commercial proposition before investing in new infrastructure or production facilities.

5. Government’s role is to enable, not operate

Marinova has benefited from state and federal government support, including manufacturing grants, research partnerships and international trade assistance.

A $5 million expansion of its Tasmanian manufacturing facility helped triple production capacity in response to growing global demand.

The company has also participated in the Marine Bioproducts Cooperative Research Centre, connecting industry and research institutions to accelerate innovation and commercial development.

What makes this case particularly interesting is the relationship between private enterprise and government.

Marinova identified the opportunity, developed its technology, established its market position and invested in its own research and growth.

Government support helped the business overcome barriers and accelerate its development.

Government didn’t need to become the manufacturer. It needed to help create the conditions for an innovative manufacturer to succeed.

This distinction is particularly relevant to local and state governments.

Economic development doesn’t always require government to initiate a project, build an asset or establish a new program.

Sometimes the greatest contribution is understanding what an existing business needs and helping it access the right support.

That could mean facilitating research partnerships, connecting businesses with export markets, assisting with regulatory requirements, supporting workforce development or enabling investment in new equipment.

Public support should also be assessed against the broader economic benefits it creates, rather than simply the commercial interests of an individual business.

The lesson for economic developers: Understand where government intervention can unlock genuine economic opportunity, then focus on facilitation, connection and removing barriers to growth.

6. Small businesses can deliver significant economic value

With approximately 18 employees, Marinova might not immediately stand out in an economic development assessment focused primarily on job creation.

But direct employment tells only part of the story.

The business supports highly skilled scientific and technical jobs, research partnerships, specialist contractors, manufacturing capabilities and international export activity.

It also provides opportunities for students to experience commercial science and see how research translates into real-world products.

These contributions are important to Tasmania’s broader innovation and manufacturing ecosystem.

The business demonstrates that regional Australia can support sophisticated, internationally competitive enterprises without needing large workforces or extensive industrial operations.

For economic developers, this raises an important question.

Are we measuring success in the right way?

Job creation matters. But so do productivity, wages, export earnings, research investment, intellectual property and the development of specialist skills.

A small advanced manufacturer producing high-value products for global markets may generate economic benefits that are not immediately visible through employment numbers alone.

The lesson for economic developers: Measure the quality and value of economic activity, not simply the number of businesses attracted or jobs announced.

7. Build the market before building the factory

Perhaps the most important insight from the visit came during a discussion about Australia’s growing interest in seaweed cultivation and marine biotechnology.

There is considerable activity underway across the country, with businesses and researchers exploring new production systems, products and applications.

But Marinova’s team made a critical observation.

Growing seaweed is one thing. Finding someone willing to buy the resulting product at a commercially viable price is another.

This applies to almost every industry.

Too often, economic development initiatives begin with an available resource, an infrastructure concept or an attractive funding opportunity.

The commercial market is considered later.

That approach can result in infrastructure without operators, production without customers and investment without a sustainable business model.

Marinova’s success has been built on understanding the value of its product, developing a differentiated offering and building relationships with customers willing to pay for its specialised ingredients.

Its manufacturing capacity has expanded in response to commercial demand.

The lesson for economic developers: Before investing in new industry infrastructure, establish who the customers are, what they will pay, how the product will compete and whether the business model is viable.

The ability to produce something is not the same as having a market for it.

What does this mean for local and state government?

Marinova’s experience provides a practical challenge for economic developers and policymakers.

Rather than focusing exclusively on investment attraction, industry precincts and new infrastructure, we should be asking some different questions.

• What are we overlooking? What resources, byproducts, specialist knowledge or existing capabilities could create greater economic value?

• Where can businesses move up the value chain? How can we help existing industries develop higher-value products and services?

• Are we connecting research with commercial opportunity? Are businesses involved early enough to help shape research priorities?

• What is preventing our innovative businesses from growing? Is it access to capital, equipment, research, workforce, regulatory approvals or markets?

• Are we encouraging specialisation? Where could our region or its businesses develop a distinctive competitive advantage?

• Are we measuring the right outcomes? Do our economic development measures adequately capture productivity, exports, skills and innovation?

• Have we established commercial demand? Are we investing in opportunities with credible customers and viable operating models?

These questions are relevant well beyond biotechnology.

They apply equally to agribusiness, food manufacturing, resources, environmental technologies, health, advanced materials and other industries across regional Australia.

The future of Australian manufacturing is already here

Australia has extraordinary natural resources, talented researchers and innovative businesses.

But our economic development opportunity isn’t simply about producing more of what we already produce.

It’s about finding ways to create and retain greater value.

Marinova demonstrates what happens when specialist knowledge, scientific research, advanced manufacturing and commercial demand come together.

An invasive seaweed became the foundation for a globally competitive biotechnology company. Research became a source of competitive advantage. Advanced manufacturing transformed marine biomass into premium ingredients. International markets enabled a small Tasmanian business to build a global presence.

And government support helped accelerate a commercially driven opportunity.

At Sparrowly Group, we work with governments, regions and businesses to identify economic opportunities, strengthen industries and turn strategic ambitions into commercially viable outcomes.

The Marinova visit reinforced something we see repeatedly in our work.

Some of the most significant economic opportunities are already sitting within our regions. We just need to recognise their potential, connect the right capabilities and create the conditions for them to grow.

Because the next globally competitive Australian manufacturer might not begin in a major industrial precinct.

It might begin with something as unexpected as seaweed washing up on a Tasmanian beach.

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Thank you to the Marinova team for welcoming delegates during the Economic Development Australia National Conference in Hobart and sharing their insights into innovation, research, manufacturing and international market development.