Finance Secretary John Swinney highlighted the importance of innovation to economic growth as he hailed a new wave of Scottish entrepreneurs.
His comments came as 17 start-up firms received seed funding totalling £540,000 during the inaugural Scottish Edge awards on Monday night.
The four main winners, who each received £50,000 from the Scottish Government fund, included Stirling-based Talking Mats which uses a mat with symbols to help individuals with communication difficulties express themselves effectively.
The new cash will primarily be used to market and launch a digital mat.
Perth-based Relume Design was among the runners-up and received £20,000 for testing and marketing of its LED lighting products.
Mr Swinney said: “I am seeing a new spirit of entrepreneurship developing in Scotland, building on our nation’s proud tradition as innovators, and the inaugural Edge Awards celebrate and support fresh Scottish business talent.
“The Scottish Government recognises that the private and public sector must work together to assist business growth in Scotland, and that’s why we established the £2 million Scottish Edge fund to unlock investment for entrepreneurs.”
Among the judges was leading Scottish entrepreneur Sir Tom Hunter.
“The Scottish Edge fund is a fantastic boost for entrepreneurs in Scotland aiming for true high growth,” he said.
“The selection panel, where we picked Scotland’s top entrants from hundreds to receive first-round funding, was a true inspiration and gives me real heart that we can and will accelerate the growth of these businesses to help in rebuilding our economy.”
The awards came as it emerged that members of Scotland’s national business angel organisation ploughed £13.76m into early-stage companies operating north of the border last year.
Figures from LINC Scotland a non-profit trust which supports private investment activity by its hundreds of members in Scotland show investment by trust members last year was 13% ahead of the £12.18m committed in 2011.
The total number of investments made by LINC members rose from 78 to 82 during 2012, with financial backing being given to 59 companies, three more than the year earlier.
Private investment from outwith the LINC network in Scotland dropped from £14.22m to £9m last year, while support from public sources remained steady at £8.45m.
The prime investment sectors last year were the life sciences and companies in the enabling technologies space.
LINC Scotland chief executive David Grahame said 2012 had been a “remarkable” year.
“It is extremely encouraging to see an increase in the amount of investment by LINC Scotland members, compared to the previous year, and once again an increase in the number of new companies receiving investment,” Mr Grahame said.
“There are a number of good projects coming forward with people prepared to back them and, although we would like to see other funders playing their part, these figures show that investors are taking a positive long-term view.
“In the current economic climate it can be difficult to attract traditional funding, but business angels are continuing to provide vital support to early-stage companies.”