The Impact of Digital Economy on Industrial Agglomeration

In an era characterized by swift digital economy development, strengthening traditional industries and aiding industrial agglomeration with digital economy. This paper examines the effects and process of the digital economy on industrial agglomeration using by developing an indicator system, employing the entropy weight approach to assess the digital economy, and industrial agglomeration is measured using the location entropy approach. According to research, the digital economy can stimulate the establishment of industrial agglomeration, and this boosting influence is particularly visible in locations located in the eastern region, where marketization, population density and technological innovation is significant. The development of the circulation industry plays a significant promoting role in the process of promoting industrial agglomeration through the digital economy. Therefore, we should actively develop the digital economy and boost infrastructure building; Promote the combination of online and offline industrial clusters, actively build online clusters, shorten the geographical distance between enterprises, and accelerate industrial integration; Develop the circulation industry, reduce production and transportation costs, enhance urbanization level, and attract capital to assist in industrial agglomeration.