Funny you should ask that question, TheFlash7269: co-operative education was invented by a former UC dean of engineering, Herman Schneider, in 1906. You can read about it here:
http://www.uc.edu/news/NR.asp?id=2935.
The biomedical engineering department has also just created a research co-op certificate, where students can co-op specifically in government, academic and industry laboratories -- paid, of course. This program is good for students who want to go into research or teaching and not necessarily directly into a business position after graduation.