Due to the dynamic nature and the stochastic success of breakthrough technology innovation, static models are inadequate to describe this process. This paper considers a supply chain composed of two manufacturers implementing breakthrough technology innovation and a retailer employing marketing strategies, analyzes the impact of technological distance on both technological investment efforts and marketing investment efforts, and proposes dynamic co-opetition strategies for manufacturers before and after the success of technology innovation. The study indicates that, prior to the success of breakthrough technology innovation, the investment efforts of supply chain members are positively correlated with the innovation success rate, marginal profits, and the rate of improvement in technology or marketing levels. After the success of breakthrough technology innovation, these efforts tend to stabilize. The technology spillover and suppression effects significantly influence the low-technology-level manufacturer and have no impact on the high-technology-level manufacturer, while the learning effect is equivalent for both manufacturers. When the technological distance is relatively small, or the success rate of technology innovation is relatively high, it is more advantageous for two manufacturers to adopt a cooperative strategy. On the other hand, when the technological distance is relatively large, or the success rate of technological innovation is relatively low, a competitive strategy is preferable. In summary, it is found that technological distance and different stages of technology innovation will significantly affect the optimal decision and co-opetition strategy of the supply chain, which provides a theoretical basis for the development of collaborative innovation of the supply chain.