The document describes Challenge Factory, a summer trainee program for students to work on research projects at JAMK University of Applied Sciences. As part of Challenge Factory, students are organized into self-managed teams and mentored by research teams as they work on problems and develop prototypes. In 2016, 19 students were accepted out of 30 interviewed to develop projects including an IoT reference system, software defined networking reference, and a training game for HYVI. The goal is to provide real-world engineering experience for students while advancing applied research projects.