Supply chain management is an important field in operations management. In recent decades, innovation and sustainability have drawn increasing attention in supply chain management research, while empirical research is still scarce due to data limitations. In this dissertation, we collect unique data and explore the propagation of innovation and sustainability across the supply chain networks. In the first part of my dissertation, we study research and development (R&D) productivity transmission across supply chain network. Using a two-sided econometric model, we find that having R&D-productive partners plays a significant role in transforming an agent’s R&D into revenues. In the second part of my dissertation, we focus on extended producer responsibility (EPR). EPR is a major policy instrument that involves producers in a shared responsibility for end-of-life product management. While the concept has been developed for around two decades, the prior studies in this field are mainly based on analytical and theoretical analyses. we seek to empirically understand (1) whether taking environmental responsibility in the post-consumer phase motivates companies in pursuing innovation for the environment and (2) how the EPR propagates across supply chains. In the context of U.S. manufacturers and retailers, we particularly test how manufacturer take-back programs affect manufacturers’ eco-innovation and retailers’ take-back program adoption.