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University is a significant part of the national innovation system. Technological innovation of universities has become an important driving force of economic growth and achieving high-quality economic development. This paper uses a variety of spatial econometric analysis techniques to investigate the inter-regional flow of the elements of university scientific and technological innovation capability and the effects of university technological innovation ability on economic growth and further studies the direct and indirect effects of university technological innovation capability by using panel data of coastal provinces and cities in China from 2005 to 2017. This research finds that the scientific and technological innovation ability of universities has obvious spatial spillover effect and it has a significant positive impact on regional economic growth. And the spatial spillover effect is greater than the direct effect, that is to say, the elasticity coefficient of the technological innovation ability of colleges and universities in the surrounding areas to the regional economic growth is greater than that of colleges and universities in the region. In addition, the investment of fixed assets, the process of urbanization and the scale of government only have the direct effect on the regional economic growth, and there is no spatial spillover effect. The scale of government and the opening-up have the direct effect and spillover effect. The conclusions for this study provide a useful reference for the government and universities to strengthen the technological innovation ability of universities so as to promote regional economic growth.