Abstract:Digital economy has become an irreversible development trend, and the national level actively advocates the cluster development of digital economy related industries. Given that Guangdong Province occupies a leading position in the development of digital economy in China, it is of profound practical significance to explore the specific impact and mechanism of different levels of industrial agglomeration and knowledge spillover effect on the innovation ability of digital economy enterprises in Guangdong Province. Based on the digital economy patent data of listed enterprises and the economic indicators of prefecture-level cities in Guangdong Province, threshold regression model and spatial Durbin model were applied to conduct in-depth analysis. The research conclusions are as follows. The agglomeration level of digital economy industry shows a significant single threshold effect on the innovation ability of enterprises, and the relationship between the two shows an inverted “U” shape. The innovation capability of digital economy enterprises presents a distinct spatial agglomeration characteristic, and the knowledge spillover effect has a significant positive promoting effect on the improvement of enterprise innovation capability.