Abstract:This study investigates how different power structure influences IR’s technology innovation strategy under remanufacturing supply chain by game theory. Three R&D innovation models marked OL(OEM as Leader), IRL(IR as Leader) and NL(No Leader) are developed and solved and the results are analyzed using mathematical analysis and numerical simulation methods. It is found that the balanced level of innovation has negative relationship with the R&D cost and positive relationship with the valuation of consumer to remanufactured product. It is also found that IRL model can get the most level of technology innovation and demand of remanufacturing product and he supply chain members can enjoy a “first-move advantage” when the innovation efficiency is high, while the OL model can achieve the same effect and the members have “second-move advantage” when the innovation efficiency is lower. However, the model preference of the supply chain is ranking as OL>IRL>and NL in most of the time.