Your phrase "Faculty and students of OSUIT will meet with the entrepreneurs/inventors to discuss needs and will engage in real, hands-on projects to produce the prototypes and limited runs." is the central innovation as I see it. My next question is how will you attract these entrepreneurs and innovators? Does the educational platform need to be in a bricks and mortars school or can you also do it online?
Also, for a budding entrepreneur such as myself who wants to create an online educational social business roleplaying vehicle possibly incorporating roleplaying platforms such as "https://roll20.net/" or "https://discordapp.com/" could your program assist someone like me?
I do like your idea as well. I saw your idea through "Pick a problem not a career/major" post. and posted there. Your idea great and really resonates with my idea of creating teams around a problem or challenge to solve. I like your alternative education approach. My only caveat is the inquiry as to how they could create their own organizations if they wish (You should check out my post Holacracy-Powered Social Business RPG) and also considering an "inner power" development consideration. Pooling empowerment practices such as from Meditation, Yoga, and other Inner spacious practices as well as western practices from Positive Psychology implementations or techniques from, for example, David Rock "Brain at Work" book. I think combining the external development with internal development is crucial.
This is only scratching the tip of the iceberg. Basically, it seems to be that what is needed is a project-based learning model for post-secondary education and your idea of focusing on solving problems encapsulates that idea nicely.