The Shandong Provincial Capital Economic Circle, centered around Jinan and radiatingto six surrounding cities, has formed a “1+6” urban development pattern and is an important growth pole for the rise and economic development of the central and western regions of Shandong Province. Collecting Economic indicator data from seven cities and 57 counties within the Shandong provincial capital economic circle, grey relational analysis method was used to measure the agglomeration level between different cities and industries. GeoDa software was used to conduct spatial econometric analysis on the clustering degree of primary, secondary, and tertiary industries within the economic circle. Based on panel data from seven cities within the economic circle from 2003 to 2021, the manufacturing and production service industry synergy agglomeration index was used as the core explanatory variable. Through empirical analysis of double fixed effects, the key driving factors affecting industry synergy are demonstrated, and rational suggestions are proposed.