Abstract
This study answers the following questions: How and why did the Czechoslovak state, second republic and the Protectorate authorities support the creative industries? The study covers the period 1918-1945 and analyses the rent-seeking process of creative industries. Active interest groups consisted of authors of literary, music and other pieces, publishers, then musicians and lastly film-makers.
It shows that the state was prepared to play a very active role and had a strong impact on the behavior of market participants. They were tightly aligned with the government structures and used argumentation about social justice and necessity to reduce the risk inherent in their business activity.
Therefore, the state changed the institutional setting in favor of authors and their organizations and provided subsidies to film with the intention to promote its quality and extra-reward those films that were in line with the state interest.