Network effect of knowledge spillover: Scale-free networks stimulate R&D activities and accelerate economic growth

•Knowledge spillover from Research and Development (R&D) activities is studied through knowledge spillover networks.•How the spillover networks affect R&D investment and economic growth is studied.•Scale-free networks stimulate R&D and accelerate economic growth.

We study how knowledge spillover networks affect research and development (R&D) activities and economic growth. For this purpose, we extend a Schumpeterian growth model to the one on networks that depict the knowledge spillover relationships of R&D. We show that scale-free networks stimulate R&D activities and accelerate economic growth.