In order to study the interaction between reward and punishment mechanisms and recycling processor s'' innovative R&D decisions , the technology spillover effect and recycling competition were considered, four decision-making models for independent R & D and cooperative R & D of the recycling processor under reward and punishment mechanism and without reward and punishment mechanism are established. The research shows that whether the government implements rewards and penalties or not, the profits from the cooperative R & D of the recycling processors are always not less than those from the independent R & D, the relative size of R & D level is related to the rate of technology spillovers and rewards and punishments. When recycling processors cooperate innovate together, the implementation of rewards and punishments by the government can always encourage recycling processors to improve their R & D level, but whether profits are improved is affected by the technology spillover rate and the degree of rewards and punishments.