The motion-induction effect, where an illusory motion is perceived within a bar when it is shown next to a spot presented slightly earlier, was studied with respect to the idea that it is based on differential processing speeds between the two ends of the bar. First, by using just a bar with a luminance gradient, the existence of a motion illusion (gradient motion) within such a bar was demonstrated, presumably due to the different processing speeds of differential luminances. When such a bar was used in the motion-induction effect, it was shown to modulate, for short delays, the strength of the effect up or down, according to the direction of the gradient with respect to the position of the spot. When the same bar was used in the double-motion-induction effect (split priming), in which motion is usually away from the later spot, it totally determined the perceived direction of illusory motion, independently of gradient direction with respect to the later spot or the time between the two spots. These results demonstrate, on the one hand, that differential local processing speed is a likely mechanism to underlie the motion-induction effect. On the other hand, they also suggest the involvement of other more global (and perhaps top—down) processes.