Equilibrium of technology innovation in a three-echelon supply chain

This paper combines technology innovation with supply chain and defines a three-echelon supply chain involving two echelons' technology innovations, which received little research before. Moreover, we not just divide technology innovation into incremental technology innovation and breakthrough technology innovation; we also assume different echelon may take different kinds of technology innovations, which has a lot of practical significance. In order to find the equilibrium of technology innovation, we first introduce the concept of contribution of synergy, and then we analyse every echelon's contribution to technology innovation, at last, the equilibrium of technology innovation is put forward by introducing a circular model of technology innovation. Our circular model of technology innovation is proved useful in evaluating the equilibrium of technology innovation.