Abstract: Based on new institutionalism theory, ecological niche evolution of industrial cluster, its causes and mechanisms were discussed．Taking Shuyang County flower and wood industrial cluster as an example, evolution mechanism of industrial cluster ecological niche driven by institutions was analyzed．Three systems of "company+farmer", "entrepreneurial wave+e-commerce" and "product standardization" have helped to promote dimensionality and deepen of industrial cluster ecological niche．Driving mechanism of industrial cluster niche evolution was ecological niche overlapping, separating, specialization and generalization, and fundamental power source was institutional environment．Thus, it is necessary to improve basic system in initial period of industrial cluster, to implement institutional innovation in growth period, and to de-institutionalize and re-institutionalize in maturity period to ensure benign evolution of ecological niche．