The escalating skills gap within European labour market and thus far within European higher education institutions underscores a critical need for innovative approaches to address the disparity between academic learning and real-world demands. Traditional educational paradigms often fall short in equipping students with the practical skills required by contemporary industries. In response to this challenge, design-based education emerges as a promising solution. Rooted in experiential and collaborative learning, design-based education transcends conventional methods, fostering creativity, problem-solving, and adaptability. This thesis delves into the pivotal role of design-based education in mitigating the skills gap in European higher education. By exploring its principles, implementation, and outcomes, this research aims to contribute valuable insights to the ongoing discourse on modernizing education and preparing students for the dynamic demands of the professional landscape. At the same time, the research that was done for the thesis sought to find out what kind of skills students consider important for the future and what kind of role HEIs play in teaching these skills. The research was carried out as a case study for the HAMK Design Factory. The students interviewed took part in the cooperation project of HAMK DF and inno.space Mannheim called International Product Development Project. The case study was conducted as individual interviews for the participating students. The questions were divided into two parts - at the beginning and at the end of the course. The themes of the questions revolved around both the students' expectations of the course and their future skills.