The structure of Swedish research finance was radically changed in 2001, and the present goals of research policy are that Sweden is to be a leading research nation, where research with a high scientific quality is conducted. However, the process of internationalizing Swedish building research leads to an issue of how international standards for scientific quality are applied and how Swedish researcher participation in industry initiatives and European framework programmes is supported. This issue is discussed against a background of a national system where research funding is indirectly and strongly linked to university teaching, which also means that research institutes are comparatively unimportant. International expansion of large firms in the construction industry has led to an increasing engagement with university research. However, the current process intended to guarantee high scientific quality in projects with national funding is inflexible and not fully compatible with what is required for industry and European research cooperation.