The European Parliament and the EU Member States have reached an agreement on the new strategic innovation agenda of the European Institute of Technological Innovation (EIT) and on an update of the EIT’s legal basis. Thanks to this agreement, the EIT will align itself with the EU’s research and innovation programme "Horizon Europe" (2021-2027) and will have a budget of almost 3 billion euros to guide the recovery of the economy and the green and digital transition in order to build a more sustainable and resilient society. The EIT will stimulate innovation by involving 750 higher education institutions in its activities, supporting 30,000 students, bringing 4,000 innovations to the market and promoting 700 start-ups. The EIT action will focus on countries lagging behind in innovation performance and through a new pilot initiative will also increase the entrepreneurial and innovation capacity of higher education institutions.