This paper is based on work done at IdeaSquare, a new innovation experiment at CERN, the European Organization for Nuclear Research. The paper explores the translation of fundamental research into societal applications with the help of multidisciplinary student teams, project- and problem-based learning and design thinking methods. The theme is approached through challenge based innovation (CBI), a pilot course coordinated by IdeaSquare in 2013-2014 in collaboration with three universities. The approach, including a visit to CERN, appears to motivate the participating students to really strong, self-directed learning and can produce new, innovative concepts for societal applications with an inspirational connection to CERN. As a result of their iterative development, the student teams created two concepts: EDUMIND to help autistic kids to communicate through augmented reality technology, and CMPRSSD to use advanced data processing to record and compress project meetings. Both of the projects were also developed further by their stakeholders after the course.