Interview | The video game industry is transforming Novska and changing the face of the entire region

Can you tell us more about your vision for Novska to become the hub of the video game industry in Europe, considering everything you've done so far?

It all started with the companies from the Pismo incubator. What we were looking for was to be different from everyone else in Croatia, and we fell right into the video game industry, which was then, and still is, the fastest-growing industry. In those years, around 2016 – 2017, there was a shortage of manpower and not enough skilled people in game development. That's how we started - with one small project worth HRK 20 million, we renovated two buildings. We turned one into a business incubator where 80 start-ups operate today, and the other into a studio with the equipment needed to develop and test video games. In parallel, we invested in education (training of game developers), which allowed existing companies in the industry to find new employees.

In cooperation with the Croatian Employment Service, we have developed training aimed specifically at retraining for game developers. With the help of the measures of the service, we further strengthened the financial stimulation of startups. And so, today we can be proud of everything we conceived and implemented, and the fact that Novska is developing as a center of the gaming industry - not only here, in the Sisak-Moslavina region and Croatia, but also much more widely.

The next step is certainly the big gaming center project, which is expected to be implemented within a month or two. A public tender is currently underway to select a contractor for the first phase. The center will spread over 9 acres in our business area. It will include student residences, a faculty building, a new business accelerator, new spaces for the development of entrepreneurship in the gaming industry, as well as sports facilities that - as we like to say - a campus can and should contain to provide specifically for young people, entrepreneurs and students the environment they need.

How has Novska changed during this time? It's hard for us to say, because actually in 2018, when we started developing the gaming industry, we didn't know what it would bring us, how the sector would actually develop and how it would affect the whole city.

People started coming to the city, they even ran out of apartments for rent. Every 6 months, new young people came from all over Croatia to retrain and be trained in gaming. This encouraged local entrepreneurs to start a new wave of housing construction in Novska - the likes of which had not happened in the last 30 years.

The whole town came to life, it accepted these new young people who today are residents of Novska and chose the town as their home - both for their families and for the realization of their business ideas and projects.

Tell us more about the city's economy. How many companies are there in Novska's business zones and how many people do they provide jobs for?

The woodworking industry has grown tremendously over the years, and we are perhaps the city with the most employment in this sector. We have five very strong companies that have been operating in the market for years. We are not giving up this traditional industry, because it is the basis of Novska's economy and provides the largest number of jobs. But we also have well-developed metal, textile and other industries. When it comes to small business owners, there is a wide variety.

The city of Novska has two business zones. The one on the west end is completely occupied and has businesses involved in the woodworking, metal and construction industries.

The second area, which is much larger – spanning 85 hectares – is also starting to fill up. We have various types of industries in it, including a construction company and a water supply company "Vodovod Novska". The biggest investor at the moment is the German company TECE, which plans to open a production facility here. We expect construction work for this company to begin at the beginning of the year.

Speaking of new investors, what exactly attracts them to Novska? Why did they choose you?

The position of Novska is very good - we are close to the border with Bosnia and Herzegovina, only 15 minutes by car. What is important above all is the transport connectivity, but also the incentives of the city. Investors who want to buy land in our business zone can get it for a symbolic price – 14 euro cents per square meter.

We provide small subsidies to small companies, but there is also state aid for large projects that the city provides to entrepreneurs. It is not only a matter of profitable purchase of land, but also of the exemption from utility tax for the first two years of operation. The price of the land depends on the number of planned new jobs. All these incentives that we provide are of great benefit to entrepreneurs both in attracting and realizing their projects.

We also offer business support through the services of our Development Agency NORA, but also through the communication and assistance provided by the Government of the Republic of Croatia. In close cooperation with the representatives of the ministries, we strive to meet the needs of entrepreneurs and give them the opportunity to benefit from all national development programs. We pay particular attention to Sisak-Moslavina County, where the incentives are significantly higher than in other regions in Croatia. I believe that this is a great opportunity for entrepreneurs to consider investing in Sisak-Moslavina, and in particular in the city of Novska, as a potential location for realizing their business ideas.

You were born here, in Novska. What are your memories of the city and how do you feel now that you see its transformation?

The transformation of Novska over the years is great, the town has had its moments of growth and decline. With the arrival of the railway in Novska, the development of handicrafts began, which turned the town into an interesting center near Zagreb. This attracted many people who migrated and settled in the Novska area. In the 1990s, however, the Homeland War halted much of this development. Many businesses closed down, and many people lost their jobs and moved out. The reconstruction after the war has continued for years, so even today, walking around Novska, traces of the war can still be seen. Over the years, despite struggling with the available opportunities, the city gradually developed.

The most significant boost in the development of Novska can be associated with the period 2017-2018, when with the support of the government and European funds, we began to use these resources to implement projects. These include investments in infrastructure, people and education. Today, Novska is an example of a small town that successfully benefits from national and European development funds. This was also confirmed at the celebration of the tenth anniversary of Croatia's EU membership when the Minister of Regional Development visited Novska. We had the opportunity to present all the projects implemented during this period and to show how a small community, through the smart use of European funds, can contribute to its progress and the development of the entire local community.

What do you think attracts young people and families to come back to Novska? Is the video game industry the sole reason or is there more to it?

Novska has long suffered from a lack of jobs, but with the development of video gaming and the growth of the city, this situation is beginning to change. Today, Novska is a city that young people do not leave, but on the contrary – they choose to settle here. A significant number of young families have moved here precisely because of the gaming industry. They started their businesses and decided to stay, and we already have the first successes in the gaming incubator. It is especially gratifying that young people from different parts of Croatia recognize Novska as a pleasant place to live.

An even happier fact is that young people who left Novska or Croatia a few years ago are now starting to think about returning. Some of them have already returned and started their own businesses or handcraft workshops with the help of the support provided by the city. The return of young families brings us great joy.

The city actively listens to their needs, and, with the development of video gaming and other projects, it uses financing opportunities - both from European funds and from national funds. We invest in various projects - from communal and infrastructural to social, cultural and public. Our goal is to develop the town in all spheres and to make life in Novska pleasant and suitable for every resident.

We also provide financial support through various programs, such as vouchers for newborns and the "Novska - my home" program, which provides funds to solve housing issues for young families. This is how we motivate and financially strengthen them to stay here. We strive to attract young people who see Novska as the city of their future, to settle here and become part of our small but dynamic community.

What are the plans for the future? Do you intend to attract and develop other industries besides video games?

It is difficult to talk about the future, but one thing is certain - the additional development of the video game industry will probably attract other industries to the city. Our goal is to increase the number of residents, the growth of the city, and the creation of new jobs. Because without a strong economy, there is no sustainable development. The gaming industry definitely attracts attention, especially from younger people, something clearly visible recently, when Novska began receiving new visitors. However, this is not just the future – it is already the present.

The gaming industry is transforming Novska, changing the appearance of the entire region, and with the implementation of the gaming hub project, I believe it will contribute significantly to the development of the city. This will lead to the attraction of new investments from various industries. Gaming is not just video games – it covers a much wider spectrum, including the entire IT sector.

It is difficult to predict what will happen in the future, but we are convinced that Novska will become a city where many people will want to live.

What is your advice to other cities like Novska that are going through a transformation from traditional industries to something new and innovative?

We really never know where an idea will take us. Our motto all these years has been, “You have to take risks to succeed.” If you don't take risks, you can't expect success. We should not be afraid to start new big projects because they can be a generator of further development. We must be wise, decisive, positive, and careful, but we must not be afraid, we must not give up, and we need to move forward.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Managing Authority. Neither the European Union nor the Managing Authority can be held responsible for them.

Translated by Tzvetozar Vincent Iolov