Abstract:University is not only the main body of knowledge creation and dissemination, but also an important position of scientific and technological innovation. A new economic geography growth model including innovation department is constructed to analyze the impact of the university R&D investment and knowledge spillover on economic growth. Using the panel data of China's provincial-level from 2004 to 2015 and the method of the system GMM, Dubin model for spatial dynamic panel is constructed to analyze the impact of the university R&D investment on economic growth from a structural perspective. The results show that: the university R&D investment has a significant effect on the economic growth from the aspects of time dimension; the university R&D investment has an obvious externality characteristic to the economic growth, and the spatial spillover effect of the applied research expenditure and the basic research expenditure are positive; the impact of knowledge spillover and the university R&D investment on economic growth are different in different regions. These policies and suggestions are proved, including increasing the university R&D investment, optimizing the input structure, building a regional innovation system, deepening the reform of scientific research institutions and stimulating the vitality of scientific and technological innovation.