Innovation and entrepreneurship education is critical for fostering economic growth and societal advancement. In applied universities, the effectiveness of such education is influenced by various factors. Here we investigate the key elements affecting innovation and entrepreneurship education through an empirical study of Chinese applied universities, utilizing a structural equation model (SEM). We found that teacher quality (TQ) significantly impacts curriculum design (CD), practical platforms (PP), and policy support (PS). CD influences PP and PS, while PP affect TQ and CD. PS impacts TQ and CD, and student individual characteristics (SI) influence all four primary indicators. Compared to previous studies, our findings highlight the critical roles of TQ and CD in enhancing educational outcomes. By optimizing these factors, along with improving PP and strengthening PS, the effectiveness of innovation and entrepreneurship education can be significantly increased. This research provides vital theoretical and practical guidance for university administrators and educators, underscoring the need for targeted improvements in key areas to foster better educational results. Such insights contribute to the broader discourse on educational innovation, offering strategies that can be applied across various academic settings to promote innovation and entrepreneurship globally.