Abstract:Firstly, this paper summarized definitions of industrial cluster home and abroad and its relation with economic increase. Then, typical industries in Wuhu were chosen and its location entropy index was calculated, which proved the fact that industry has a tendency of gathering. Finally, the conclusion was drawn that there is a positive relationship between the industrial cluster and the economic increase in Wuhu, through setting the quantitative model between them and analyzing the relationship between them with Eviews. However, this relationship isn’t apparent mainly because the scale of industrial cluster in Wuhu isn’t enough.