The object of this article is to explore the political processes behind the regionalisation of film production in Sweden since the early 1990s and forward. What can explain the transfer of power from central government and film production companies to regionally based institutions? My thesis is that institutions matter. Institutions are seen as an intermediate level between state structures and rational choice/actor explanations. Institutions are equivalent to formal rules, compliance procedures and standard operation practices that structure the relationship between individuals in various units of the polity and economy. The redefinition of film production from national art policy to regional and local policy for development and economic growth is crucial. This redefinition also has to be seen in the light of the general trend towards regionalisation both in Sweden and internationally.