Purpose - The purpose of this paper is to present how the Regional Centres of Expertise (RCE) Graz-Styria as well as RCEs as instruments can contribute to regional development. The RCE Graz-Styria is representing a case study of Central European RCEs. Design/methodology/approach - The paper describes the development process of RCE Graz-Styria. Regional challenges to strengthen sustainable regional development have been investigated by literature review and interviews with regional actors. Findings - The paper discusses challenges of establishing an RCE and describes how an RCE can face regional and global challenges by innovative actions. Practical implications - The paper provides an insight of the establishment of the RCE Graz-Styria. Readers who would like to establish an RCE in their own region can learn from the process of RCE Graz-Styria. The reader has to take into account that the regional challenges might be different, and thus the RCE Graz-Styria is a role model regarding its management structure for RCEs based at universities. Originality/value - By 2008 and since 2006, every year more than ten new RCEs have been officially acknowledged by the United Nations University. Specially for those new RCEs coming in the next years, which can learn from reading about different management structures and different challenges experienced by different RCEs. For already established RCEs, RCE case studies are useful not only for learning from other RCEs but also for getting in contact with RCEs with common interests and initiating common projects.