Abstract: Through a study on the development of the jadeite industry in three jadeite industrial clusters in Yangmei，Sihui and Pingzhou，Guangdong Province，the present paper aims to reveal the formation and development mechanisms of the jadeite industry in those areas.This paper proposes that the development process of the jadeite industry in those areas can be divided into two main stages，either of which has its own leading factors，development patterns and driving forces.During the stage when the jadeite industry was taking shape，the leading forces were government policies and successful local businessmen，the development patterns were imitation and technology diffusion，and the driving forces were bandwagon effect and information advantage.During the stage when the jadeite industry was undergoing rapid development，the leading forces were market disciplines and external effects of the clusters，the development patterns were the rapid gathering of the industries relevant to the clusters，and the driving forces were technological innovation.