This research examines the mechanism of early induction, the development of induction, and the ways attentional and conceptual factors contribute to induction across development. Different theoretical views offer different answers to these questions. Six experiments with 4- and 5-year-olds, 7-year-olds and adults (N = 208) test these competing theories by teaching categories for which category membership and perceptual similarity are in conflict, and varying orthogonally conceptual and attentional factors that may potentially affect inductive inference. The results suggest that early induction is similarity-based; conceptual information plays a negligible role in early induction, but its role increases gradually, with the 7-year-olds being a transitional group. And finally, there is substantial contribution of attention to the development of induction: only adults, but not children, could perform category-based induction without attentional support. Therefore, category-based induction exhibits protracted development, with attentional factors contributing early in development and conceptual factors contributing later in development. These results are discussed in relation to existing theories of development of inductive inference and broader theoretical views on cognitive development. (C) 2015 Elsevier Inc. All rights reserved.