This paper presents key insights from the Interreg FREIIA project (2022–2025). It explores how student-led innovation can strengthen sustainable governance in small island communities across Northern Europe. The project engaged university students in real-world innovation and project management, using a design thinking-based framework to address local development challenges.

Work Package 4 (WP4) emphasized experiential learning and sustainable entrepreneurship, empowering students to co-create solutions with local stakeholders on six islands—Hvaler in Norway, Schiermonnikoog in The Netherlands, Bornholm in Denmark, Koster in Sweden, Groix and Ouessant in France. Through interviews, analysis, ideation, and prototyping, students tackled shared challenges such as youth outmigration, seasonal tourism dependency, housing shortages, and fragmented governance structures.

The project’s educational model promoted interdisciplinary collaboration, international exchange, and place-based learning. Students together with local stakeholders developed context-sensitive ideas for solutions including mobile innovation hubs, and decentralized education facilities. These initiatives not only addressed local needs but also fostered entrepreneurial thinking aligned with principles of sustainability and inclusive governance.

Key findings highlight the potential of student sustainable entrepreneurship as a driver for resilient local governance. The Interreg FREIIA project demonstrates how international education projects can integrate sustainability, circular economy principles, and student engagement to build capacity for long-term community development. It offers a replicable model for embedding governance-oriented entrepreneurship into higher education curricula.

Keywords: International Collaboration, Student-Led Innovation, Sustainable Entrepreneurship, Governance.