Demographic change and aging are a common challenge in Europe. The rising number of elderly people will need support at home, and will consume more healthcare services, putting further pressure on the welfare system. Collaborative, integrated and people-centered care provision, whether in hospitals, homes or in the community, is a way forward to sustainable and efficient care systems. Innovative treatments to address chronic diseases and the functional decline of older people will enable them to live longer in better health and with a better quality of life. To fully unleash the potential of aging in the European Union, the European Commission -within its Innovation Union policy- launched the first European Innovation Partnership on Active and Healthy Ageing (EIP AHA). Promoting engagement and partnerships among all stakeholders in the healthcare chain is essential. This article describes the theoretical foundations, the development and expectations of the initiative, and its first actions.