The digital economy, as an integrated economy, has become the driving force behind economic growth in various regions, fueling economic transformation and upgrading and serving as the focal point of industrial competition. Shenzhen, as a major first-tier city and a pilot demonstration area for socialism with Chinese characteristics, is taken as an example in this study. By exploring the mechanisms through which the digital economy impacts the upgrading of regional industrial structures, this paper analyzes how the digital economy promotes regional industrial transformation and upgrading through technological innovation, industrial integration, and market competition. It also discusses the existing problems and challenges, and proposes corresponding policy recommendations in areas such as talent cultivation, improving social welfare, and supporting enterprises to better leverage the role of the digital economy in upgrading the regional industrial structure. These efforts aim to ensure the sustainable development of Shenzhens economy, making the new engine more powerful in leading development, creating jobs, supporting international competition, and driving Shenzhens economic and social progress toward high quality.
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