Abstract:Based on the 1998-2012 provincial panel data,the nonlinear spatial relationship between agricultural research investment and farmers’ income is explored by spatial panel model in this paper. Results show that agricultural research investment has significant spatial spillover and diffusion effects, which can significantly increase farmers" income. In the three fiscal expenditures on agriculture, the contribution of agricultural research investment to farmers" income is at an intermediate level. In order to further tap the potential of agricultural research investment to promote farmers" income, we could optimize the regional distribution of agricultural research investment, build special fund managing financial expenditure on agriculture and improve the transformation and use efficiency of agricultural scientific achievements.