factors'chasing for industrial clusters rents.Firms achieve greater prolificacy by agglomeration in space,cooperation with each other and proximity of social relationship.Therefore enterprises in clusters can yield much more rents.Geography rents yield by resource advantage,favorable culture and historical circumstances, traditional craft,information and knowledge diffusion,plausible policies by government in local region,so industrial clusters come into being due to geography rents.Besides this,clusters may form when some sticky production factors in space transfer from low-profit industries to high-profit industries.Obviously,the formation of clusters will be spurred if production factors both inside and outside the region concentrate in one area.Therefore,we can promote industrial clusters'development by eliminating market entrance barrier,carrying out trade liberation policy and avoiding government irrelevant intervention. 2.As the main sources of industrial clusters rents turn to the organization rents from the industry rents and geography rents,the industrial clusters evolve from the informal industrial clusters to the organized industrial clusters,the later ones are more complicated and advanced.In the informal clusters,enterprises agglomerate in space to gain external economies passively.In the formal clusters, enterprises cooperate and harmonize with each others,therefore overcome many disadvantages that independent small enterprises cann't get over.The government and industrial institute play important rule in this stage. 3.When industries experience downthrown demand in the market, clusters decline spontaneously.Industrial clusters will lose exogenous comparative advantages due to dissipation of geography rents.If clusters can't yield organization rents endogenous to resist centrifugal forces,the industrial cluster will decline. factors’ chasing for industrial clusters rents. Firms achieve greater prolificacy by agglomeration in space, cooperation with each other and proximity of social relationship. Therefore enterprises in clusters can yield much more rents. Geography rents yield by resource advantage, favorable culture and historical circumstances, traditional craft, information and knowledge diffusion, plausible policies by government in local region, so industrial clusters come into being due to geography rents. Besides this, clusters may form when some sticky production factors in space transfer from low-profit industries to high-profit industries. Obviously, the formation of clusters will be spurred if production factors both inside and outside the region concentrate in one area. Therefore, we can promote industrial clusters’ development by eliminating market entrance barrier, carrying out trade liberation policy and avoiding government irrelevant intervention. 2. As the main sources of industrial clusters rents turn to the organization rents from the industry rents and geography rents, the industrial clusters evolve from the informal industrial clusters to the organized industrial clusters, the later ones are more complicated and advanced. In the informal clusters, enterprises agglomerate in space to gain external economies passively. In the formal clusters, enterprises cooperate and harmonize with each others, therefore overcome many disadvantages that independent small enterprises cann’t get over. The government and industrial institute play important rule in this stage. 3. When industries experience downthrown demand in the market, clusters decline spontaneously. Industrial clusters will lose exogenous comparative advantages due to dissipation of geography rents. If clusters can’t yield organization rents endogenous to resist centrifugal forces, the industrial cluster will decline