Abstract: Based on the analysis of traditional technology diffusion patterns and the development characteristics of china coalbed methane industry,geological effect of technology diffusion in unconventional natural gas industry is concluded which shows effective technology diffusion can happen on condition that the geological conditions of study region must be similar to the region of technology diffusion source.Meanwhile,the distinctive technology diffusion pattern constrained by geological conditions usually leads to unreasonable phenomenon such as regional industry polarizes slow expansion of industrial scale and production concentration.Finally,the policy of "classification support,dynamic turning"is proposed on the basis of characteristics on technology diffusion and the development of unconventional natural gas industry in China.