Abstract: To make a scientific policy according to their own characteristics, market entity at all levels need to understand the institutional change effect on the industrial transfer and predict the trend of the new industrial transfer. This paper probes into the formation mechanism of institutional change effect on industrial transfer by adopting the perspective of the neo-institutional economics. Based on this, the paper constructs direct variables for industrial transfer, verifies, from different aspects, the institutional change effects on the industrial transfer based on the data collected from Anhui and Hunan province and make an analysis of their differences.