Innovations in teaching and collaboration between businesses and universities can lead to improved learning outcomes and various benefits in international business (IB) practice. The Triple Helix Model (THM), incorporating government involvement, serves as a fundamental framework for this collaboration. This research, grounded in the THM and employing Challenge-Based Learning (CBL) as an innovative educational approach, aims to conceptualize the key drivers of successful university-business collaboration, by emphasizing students' engagement. Focused on students enrolled in the Export Management undergraduate specialization at a Lithuanian higher education institution, this study employs a qualitative approach, involving in-depth interviews with students, teachers, social partners, managers, and representatives from government institutions. The study concludes that student engagement is the primary driver of successful collaboration in IB education between universities and businesses. This engagement is influenced by a wide range of second-tier factors, including assignment organization and delivery, as well as the motivations, expectations, and perceived benefits of students and other stakeholders involved. The conclusions of the study highlight the implications for educational practice and policy, emphasizing the need for effective student engagement strategies. This article also illustrates the application of the CBL approach within a business and entrepreneurship curriculum, with a particular emphasis on its integration into IB education.