At the regional and metropolitan level, the economy of agglomeration has the important roles to play in their development of economy. They include localization economy, which are industry-specific and result from the expansion of a particular industry in a certain place, as well as urbanization economy arising from the greater array of services and opportunities available in larger places. If urbanization economy dominates, the industry fortunes will be tied to the larger city sizes. Similarly, if localization economy dominates, the industry fortunes will be tied to their industries of specification. Despite of the word ‘agglomeration’ with relation to the geographical places, some common statistical indexes to estimate the level of agglomeration economy have no component of spatial proximity to be incorporated into. For this reason, the other analytic technique, namely spatial autocorrelation analysis is introduced by this study to attempt to test the level of urbanization and localization economy. Specifically, the industrial data of Jiangsu in 2002 is used for the empirical analysis of the spatial patterns of urbanization and localization economy. This study shows that at first Jiangsu had the higher level of localization than urbanization at the county level in the industrial sector in 2002. Second, among 67 counties (cities) in Jiangsu, most existed the industrial agglomeration (urbanization and localization economies), but there are much more counties with lower level than the ones with higher level. Finally, the counties with higher-level agglomerated economy were located in Southern Jiangsu, where the counties with lower level in Northern Jiangsu. And the counties with significant high level of urbanization were located in Suzhou municipality, Kunshan city, Changshu city, Wujiang city, Zhangjiagang city and Taicang city which of economic development depend on the increases of population. On the other hand, the ones with significant high level of localization were located in Wuxi municipality and Changzhou municipality. All of the cities are located within Shanghai metropolitan area.