  The emergence of interconnected urban networks is a crucial feature of
globalisation processes. Understanding the drivers behind the growth of such
networks - in particular urban firm networks -, is essential for the economic
resilience of urban systems. We introduce in this paper a generative network
model for firm networks at the urban area level including several complementary
processes: the economic size of urban areas at origin and destination,
industrial sector proximity between firms, the strength of links from the past,
as well as the geographical and socio-cultural distance. An empirical network
analysis on European firm ownership data confirms the relevance of each of
these factors. We then simulate network growth for synthetic systems of cities,
unveiling stylized facts such as a transition from a local to a global regime
or a maximal integration achieved at an intermediate interaction range. We
calibrate the model on the European network, outperforming statistical models
and showing a strong role of path-dependency. Potential applications of the
model include the study of mitigation policies to deal with exogenous shocks
such as economic crisis or potential lockdowns of countries, which we
illustrate with an application on stylized scenarios.
