The European Commission (EC) proposes to create a European Institute of Technology (EIT) to improve Europe’s research performance and to enhance its impact on the industry to respond to the global changes. Although the EC´s proposal derives from the correct assertion that Europe’s research performance must be improved and its impact on industry enhanced, LERU believes that  a correct diagnosis is needed before proposing solutions. The challenge that Europe faces is threefold: to strengthen its basic and fundamental research; to strengthen existing and stimulate the emergence of world class universities; and to increase research engagement and investment by European industry. However, as LERU elaborates in this position paper, an EIT is a diversion that fails to address any of these key priorities.