Evidence suggests that New Brunswick possesses the core strengths needed for a thriving Interactive Digital Media (IDM) sector: a growing talent pipeline, a strategic geographic position between Anglophone Nova Scotia and Francophone Québec, and strong post‑secondary institutions.
Positioning IDM as a core economic engine could offer a low‑risk, high‑return lever for the province. By following the lead of proven models in Québec, Nova Scotia, and outside of Canada, it is conceivable that New Brunswick could retain more of the talent it cultivates, foster the creation of local businesses, attract external studios, and generate a sustainable stream of high‑value jobs and tax revenue. The province already enjoys a vibrant education base that fosters the growth of skilled students and artists, so the potential is there to transform these talent pools into locally‑owned intellectual property (IP) and long‑term economic prosperity.
Capitalizing on Local Talent
There is a steady supply of skilled workers currently being trained in New Brunswick. Institutions like McKenzie College are successfully producing “generation after generation of highly skilled professionals and artists”³ in animation and game development. These graduates often develop their own Intellectual Property (IP) and possess advanced skills. However, without a robust local industry, these trained individuals are most often look for careers in established centres across Quebec, Ontario, or the United States of America or remain within the province of New Brunswick but settle into careers that do not reflect their educational background.
By establishing a competitive IDM tax credit, NB would achieve two goals: successfully retain its local talent and become a magnet for attracting experienced professionals back to the region, reversing the current trend. Industry experts from Quebec, Ontario, and Nova Scotia recognize this vital talent pipeline as the key resource that makes New Brunswick an attractive location for companies. These companies are ready to establish offices when the proper frameworks are in-place. Furthermore, supporting these strong academic institutions allows for the local creation of proprietary Intellectual Property (IP), which is the foundation of the billion-dollar IDM economy. If this IP is developed locally, it generates long-term wealth for the province.
The Economic Upside
The potential economic prize for New Brunswick would be significant. Canada’s video game industry is a globally recognized leader. It contributed $5.1 billion to the national GDP in 2024 and supports thousands of high-quality jobs with an average salary now reaching $102,000 CAD.
It is interesting to look at the success of centres like Montreal, where the sector employs over 15,200 people. This activity results in roughly $1.55 Billion CAD in annual salary impact alone. To put that into context, If New Brunswick were to capture just one-tenth of this activity (seen as a highly achievable target given its bilingualism and strategic location by industry experts), it would generate over $155 Million CAD in annual salary activity.
Our neighbours have already shown how powerful incentive-based growth can be. Nova Scotia, using targeted funding and incentives, reported that its film industry alone contributed $140.7 million to its economy in 2023-24.
A Proven Blueprint
If we look beyond our borders for an example of a municipality that leveraged it’s potential into a thriving multi million-dollar game‑development hub, the story of Skövde, Sweden stands out. Skövde is a town of roughly fifty-five‑thousand residents, yet, through a deliberate, long‑term commitment to a dedicated game‑industry ecosystem, it has become a beacon of digital creative capital.
In the early 2000s Skövde faced the same challenge many mid‑sized regions encounter: a shrinking industrial base, young people leaving for larger cities, and a lingering perception that high‑tech opportunities belonged elsewhere. The municipal council made the bold decision that they would invest in “game infrastructure” as a permanent pillar of the local economy. The city engaged in a partnership with its university, local businesses, and a newly created incubator called Sweden Game Arena. The agreement was signed across party lines.
The arena provided affordable studio space, shared production tools, and, crucially, hands‑on mentorship from seasoned developers who had already succeeded in larger markets. The university re‑aligned its curricula to feed directly into the incubator, offering courses in real‑time graphics, interactive storytelling, and business fundamentals. Regular community events such as hackathons, showcase evenings, and industry panels created a culture of collaboration that kept talent local.
Within a few years the first few local studios began delivering titles that resonated worldwide. Companies such as Stunlock Studios, Iron Gate, and Coffee Stain grew from small teams housed in the arena to internationally recognised developers with multimillion‑dollar revenues. By 2022 the collective turnover of the Skövde cluster topped CAD 475 million, employing nearly three hundred people. The corporate taxes generated, over CAD 44 million in a single year, covered the original public investment in the incubator in less than a decade, delivering a significant return on taxpayer money.
Skövde’s success was built on three principles:
- A Long‑Term, Cross‑Party Commitment: They created a refundable Digital Media Tax Credit and accompanying infrastructure funding in legislation that survived changes in government. A ten‑year timeline gave studios the certainty they needed to plant roots.
- Academic Partnership: Skövde’s universitiy became a strategic talent pipeline. Our colleges and universities such as McKenzie College, New Brunswick Community College, Collège Communautaire du Nouveau-Brunswick, Université de Moncton and Mount Alison University, would have the potential to bolster existing programs or co-design new ones to feed directly into studio needs, ensuring graduates would have immediate pathways to local employment.
- A Physical Hub with Mentorship: Skövde created the incubator Sweden Game Arena, which facilitated much of the success of their approach. It would be interesting to see a well‑equipped incubator in a central location that replicates the same model, staffing it with industry veterans who would advise on financing, IP protection, and global distribution. In Skövde’s case it lowered the barrier for start‑ups and accelerated their growth.
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Sources
Nova Scotia Film Industry Economic Contribution https://cch.novascotia.ca/film-and-television-production-incentive-fund
Nova Scotia Digital Media Tax Credit (DMTC) – https://www.novascotia.ca/digital-media-tax-credit
Michael Roy, Director of Video Game Art and Animation, McKenzie College. Quoted for the statement on the output of graduates in the IDM sector and conversations with economic development agencies and the government.
Dale Ritchie, President, McKenzie College. Quoted regarding the competitive rate required for the NB tax incentive and conversations with economic development agencies and the government.
New Brunswick Department of Tourism, Heritage and Culture (THC): Official website for department classification. https://www2.gnb.ca/content/gnb/en/departments/thc.html
Canada’s Video Game Industry (2024). canadasvideogameindustry.ca
PwC Canada: Entertainment & Media. pwc.com/ca/en/industries/entertainment-media.html
Jonsson, Henrik. Building a Successful Video Game Business Province. PDF file presentation given at the Policymaker Roundtable on Game Industry Growth – in Moncton on November 26th, organized by Shred Capital. radgivery.com