Abstract The Teaching Factory paradigm provides a real-life environment for engineering students to develop their skills and competencies, through directly involving them with real-life industrial challenges. Through the use of modern digital technologies and tools, and in combination with the relevant educational approach, a two-way knowledge communication between academia and industry is formed, aiming to mutually benefit both stakeholders. This work focuses in presenting a framework for successful industrial-based teaching & training to engineering students, while at the same time, providing novel engineering solutions to enterprises through the Teaching Factory paradigm. The educational approach and required ICT infrastructure for the facilitation of knowledge exchange are presented. The proposed framework and tools are validated in a pilot application involving a collaborative machine tool design scenario and results are presented aiming at motivating use of the Teaching Factory concept as a collaborative design facilitator.
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