TIGA, the trade association for the video games industry, called for a Games Investment Fund to boost the sector.
It said the move would improve studios’ access to finance, encourage new developments and promote studio growth.
An investment fund would build on the success of the Dundee-based UK Games Fund, a winner at this year’s Courier Business Awards.
Grants or loans would be made available to games businesses on a pound-for-pound, matched funding basis up to a maximum of £200,000.
TIGA, a network for games developers and digital publishers, made the call in advance of the UK Government’s Autumn Statement on November 23.
Dundee West MP Chris Law, co-chair of the All Party Parliamentary Group for Video Games, said the UK Games Fund had demonstrated the potential for public support through funding nearly 50 companies the length and breadth of the UK over the past year.
“Many of these companies have already secured significant further private investment as a result of the grant support,” he stated.
“Establishing TIGA’s proposed Games Investment Fund would build on the success of the UK Games Fund and help grow this industry in all of the UK’s creative hotspots including Dundee and the wider Scottish games cluster.”
Dr Richard Wilson, chief executive of TIGA, said: “If the Scottish video games industry is to fulfil its potential then we need to provide more games studios with better access to capital and business advice.
“TIGA believes that the UK Government should establish a Games Investment Fund which could make loans and grants available to games businesses on a matched funding basis.
“It would also provide a commercial mentoring business advisory service, staffed by industry veterans, for games companies that access sits grants or loans.”
Dr Wilson said a similar scheme in Finland has been very successful in providing financial support to over a fifth of the entire Finnish industry’s studio population.
The venture had also been good for the Finnish taxpayer and government, in generating €9 to €26 for every €1 invested.
Scotland has the third largest games cluster in the UK, after London and the south-east, and many of the firms operate in Dundee.
Recent research found almost 1300 permanent and full-time equivalent creative staff working in 85 companies north of the Border, an increase from 2014.
Scottish games development companies are estimated to invest nearly £62m in salaries and overheads, contribute £56m in direct and indirect tax revenues and contribute nearly £138m to the UK’s Gross Domestic Product.