They were hooked up to other venues around the world by video-conferencing.
Made of wool, their product includes a storybook, bag and accessories. Each member of the "Hug-a-Bear" family represents an environmental theme.
The group also had to write a business plan and make an oral presentation.
The event was organised by the Enterprise New Zealand Trust and Venture Taranaki.
Trust chief executive Ken Baker said the event was an important part of the quest to encourage students with business skills.
"The students learned how to work in teams, negotiate, become results-focused and discovered how failure can become an opportunity."
The contest was designed to test their entrepreneurial, creative and innovation skills.
They were asked to develop a working model of an educational toy or game on a global environmental theme using only local recyclable materials.
A group of Industry New Zealand business development advisers acted as mentors and shared their expertise.
Claire Johnstone, Industry New Zealand general manager for the central region, said innovation and entrepreneurship were essential for the country's economic prosperity.
The win showed that New Zealand students could excel in business given the right type of training and encouragement.
Ten teams of eight students from schools throughout New Zealand competed against each other to represent the country in the international division of the event.
Venture Taranaki chief executive Stuart Trundle said last year's Global Entrepreneurship Monitor report showed New Zealand was punching above its weight internationally.
"I still sense we as New Zealanders underestimate our ability to compete aggressively internationally and to work collaboratively," he said.
"As we've now demonstrated, we can easily out-enterprise the rest of the world."
Feature: entrepreneurs
Global Entrepreneurship Monitor
