The European Institute of Innovation and Technology has held its inaugural meeting in Budapest, the institute's host city, and elected Martin Schuurmans, former executive vice president of Philips Research/Philips Medical Systems, as chairman of the EIT Governing Board.
The institute aims to rival the Massachusetts Institute of Technology in the USA in generating technological advances.
The European Union is providing initial funding of more than 300m euros (£238m) for the institute, which will pool the expertise of universities, research bodies and businesses in new partnerships.
Renewable energy and new-generation IT projects are among the priority areas. The EIT is part of an overall EU strategy to promote jobs, growth and competitiveness in the EU.