"There is often a migration to start-ups, because of their potential and things like stock options and benefits," Austin said.
Along with many companies that stay in the area after growing out of the two universities, Cambridge is home to many established companies now facing start-up competition.
Lotus Development Corporation, which was founded in Central Square, is one of the largest software firms in the country.
The company, which employs over 1,700 workers, is the biggest company in Cambridge.
"They are a major employer," Strain said.
Even with high-tech expansion at Harvard and MIT, Cambridge officials maintain that the city does not make a conscious effort to attract new technology.
"Our main strategy is to grow from the inside," Strain said.
And with the resources of MIT and Harvard, that growth is likely to continue for years.