Look at the posted videos, it's a lot easier to see than to explain. The gist of HOW it works is clearly explained in posts #6 and #7 above. For an open (a/k/a natural) harmonic you touch the string at a node and pluck it. The nodes are all over the place, with the most prominent being at the 12th fret (divide the string in half), the 5th and 24th frets (same node, divides the string in fourths), and the 7th/19th frets (divides the string in thirds). Now to get artificial harmonics, you do the same thing, but you have to be a bit more inventive with how you stop the string at the node and pluck it.
So, what Jaco did was to use his left hand to fret the string at whatever fret he wanted. Then he used his right thumb to stop the node (what you do with your left hand for a natural harmonic), and he plucked the string with his right hand fingers. Just gently touch the string with your thumb 12 frets above where you're fretting the string, then pluck it with your fingers.
Some people find it easier to reverse the fingers and thumb (many guitarists do this- like Chet Atkins and Lenny Breau). They'd damp the node with their first finger, and then pluck the string with their thumb. They started doing that probably because they used thumb-picks, but it works just as well on bass. The point is that you have to keep moving your right hand to be in position 12 (or five, 7, etc.) frets above where the left hand is stopping the string.
John