The Scottish government has invested over £80,000 in the Dare to be Digital programme that seeks to get youngsters into game development.
The funding has enabled teams from all the around the world as far as China and India to take part in this year's event.
“I’ve been very supportive of dare to be digital,” Scotland’s culture and external affairs secretary Fiona Hyslop told Develop.
“Part of our interest particularly is the fact that the Dare to be Digital competition attracts international interest.
“I’ve met some students form Finland. India and China and the stories we’re now hearing after several years is some of these studios are wanting to stay in Dundee and start up new businesses or to study.”
Dare to be Digital gets teams of students to develop a prototype video game in just nine weeks. The Scottish competition is internationally respected for educating young and aspiring developers.
The culture secretary also expressed her delight that tax breaks had finally been approve by the UK government.
“I’ve been calling on tax breaks for the computer gaming industry for quite some time,” she said.
“As for what comes from that, it’s got to be one where there’s a benefit to new entrepreneurial companies, and part of that is going to be the calibration of where the tax breaks kick in.
“We want to make it to such a stage where the commercialisations and that projection for growth as they move from start-up to full-scale development can still continue in that trajectory.”
Earlier this year, UK trade body UKIE set up a Scottish office. The international arm of the Scottish government has also championed the nation as a global development hub.