Abstract: In the context of the dual cycle, the integration of the digital economy and high-tech industries will help promote the construction of a domestic and international dual cycle pattern. This article decomposes the digital economy into digital industrialization and industrial digitization, and creatively develops the "digital production function". Measure the way of industrial digitization under the framework, and propose the influence mechanism of the digital economy on the development of high-tech industries, including foreign trade exports and domestic demand. This paper uses high-tech industry data and the measured digital industrialization and industrial digitization related index data, and uses panel data model and panel threshold model to study the relationship between digital economy and high-tech industry output, including foreign trade exports and domestic demand. The research found that: industrial digitalization has a positive effect on foreign trade exports, and digital industrialization has no effect on foreign trade exports; there is a "U"-shaped relationship between industrial digitalization and foreign trade exports, and there is a "U" between digital industrialization and domestic demand The relationship between digital industrialization and industrial digitization is mutually advancing, but the current level of synergy is not high; industrial digitization and foreign trade export levels are low, and the positive contribution of industrial digitization to foreign trade exports is not high; industrial digitization is positive for domestic demand The directional effect increases as the level of industrial digitization increases, and increases first and then decreases as the level of domestic demand increases.