Abstract:This paper studies the effects of technological innovation on the remanufacturing models of closed-loop supply chain. In the stackelberg game, the manufacturer is the leader, the retailer and the third party remanufacturer both are the followers. We build retailer remanufacturing model and third party remanufacturer model separately. Comparing the optional profits of retailer and manufacturer in the two models, we obtain some surprising outcomes. The retailer remanufacturing is not always good to the retailer. If the cost of technological Innovation is low, the retailer remanufacturing is bad to herself, if the cost of technological innovation is high, the retailer certainly choosing retailer remanufacturing because of retailer’s profit in the retailer remanufacturing model is larger than one in the third party remanufacturing model. This is different from the traditional wisdom. In addition, the manufacturer’s optional profit and consumer surplus in the retailer remanufacturing model are always lower than ones in the third party remanufacturing model.