The cultivation of application-oriented innovative talent is the primary objective for application-oriented undergraduate insti tutions. The “Challenge Cup ” national college student extracurricular academic science and technology works competition often re ferred to as the Olympic Games of contemporary college students’ technological innovation serves as a significant platform for pro moting innovation and entrepreneurship education within application-oriented undergraduate institutions. Reflecting upon the three decade legacy and evolving trends of the “Challenge Cup ” oupled with a thorough analysis of the competition’s distinctive character istics and the remarkable achievements of its notable winners it can offer invaluable insights into its profound influence on student de velopment within application-oriented undergraduate institutions. Additionally in light of the identified challenges associated with tal ent cultivation through the “Challenge Cup ” this paper proposes several measures including redefining the value orientation of com petitions establishing platforms for scientific innovation training and capitalizing on the distinctive characteristics of application-ori ented undergraduate institutions. These initiatives play a crucial role in enhancing educational outcomes derived from competitions fostering increased student participation improving result conversion rates and establishing the “Challenge Cup ” as an essential arena for cultivating innovative application-oriented talents.