How to use the Internet of Things (IoT) technology to enhance the effectiveness of innovation and entrepreneurship of college students has become a topic of focus in undergraduate colleges and universities. For this reason, this paper proposes to integrate innovation and entrepreneurship education with IoT technology. Due to the inconsistent application direction of IoT technology, it can be broken down into system integration technology, wireless communication technology, and intelligent sensing technology. These three are working together to create an innovative entrepreneurship teaching model that is based on IoT technology. The empirical analysis shows that the experimental group and the control group at the end of the period show large differences in the factor of innovation and entrepreneurship knowledge, with the mean values of 4.822, 5.163, and T=6.47, respectively, and P=0.0004. In addition, the linear regression equation of IoT technology and innovation and entrepreneurship ability (Y2) is Y2=71.863+0.128X1, which shows that IoT technology can effectively improve the students’ college students’ innovation and entrepreneurship knowledge, ability, and thinking. This study confirms that the development of IoT will bring unlimited possibilities to innovation and entrepreneurship education and will become an important driving force for developing students’ creative thinking.