During the last two decades, film support, film policy and the public financing of audiovisual production in Scandinavia and particularly Sweden have undergone extensive change. These transformations may be seen as responses to globalisation, to increased sub-national regional independence as well as to the emergence of ideas related to the nurturing of the ‘creative industries’. They may also be seen to be a consequence of the increasing permeability of the borders of European nation-states. This article traces a history of film policy in a geographically marginal part of Europe that has been characterised by a range of tensions as a result of competing definitions of film as art and commerce. These tensions are traced back to the 1960s when film support were first introduced and the first seeds of conflict€“ – still discernible in the present situation –  were planted.