Abstract This paper examines the equilibrium of three types of technological innovation portfolios, and addresses three related problems. First, we measure the effect of synergy on supply chain profit. Then, we compute cost savings under both synergistic and random organization. Finally, we explore the equilibrium of technological innovation in the supply chain. To solve these problems, we develop a synergy function that is applicable in situations involving neutral technological innovation. Particularly, our circular model of technological innovation could prove useful in evaluating the equilibrium of customer perceptions.