The latest generation of innovative technologies (ubiquitous computing, tangible interaction and Internet-based systems) blur the boundaries between objects and services. Purdue University's interaction design program is its latest addition to the industrial design area. The goal is to arm students with knowledge and tools to prepare for the integration of physical and digital interaction. This paper focuses on introducing several educational approaches to integrating user experience research into the context of industrial design. These approaches lead to new interaction design courses. We discuss the experience gained from teaching and the potential for improvement. Different from traditional human-computer interaction courses in computer science, we weave real-world projects into the courses, study related cognitive and social systems to inform knowledge, employ research methodologies to evaluate and improve the design, and adopt innovative technologies to better accommodate human experience.