page_title: Cambridge, Massachusetts
section_title: Economy
hierarchical_section_title: Cambridge, Massachusetts / Economy
caption_attribution_description: Cambridge Skyline
context_page_description: Cambridge is a city in Middlesex County, Massachusetts, and part of the Boston metropolitan area as a major suburb of Boston. As of July 2019, it was the fifth most populous city in the state, behind Boston, Worcester, Springfield, and Lowell. According to the 2010 Census, the city's population was 105,162. It is one of two de jure county seats of Middlesex County, although the county's government was abolished in 1997. Situated directly north of Boston, across the Charles River, it was named in honor of the University of Cambridge in England, once also an important center of the Puritan theology embraced by the town's founders.
  Harvard University, the Massachusetts Institute of Technology, Lesley University, and Hult International Business School are in Cambridge, as was Radcliffe College before it merged with Harvard. Kendall Square in Cambridge has been called "the most innovative square mile on the planet" due to the high concentration of successful startups that have emerged in the vicinity of the square since 2010.
context_section_description: Manufacturing was an important part of Cambridge's economy in the late 19th and early 20th century, but educational institutions are its biggest employers today. Harvard and MIT together employ about 20,000. As a cradle of technological innovation, Cambridge was home to technology firms Analog Devices, Akamai, Bolt, Beranek, and Newman (BBN Technologies) (now part of Raytheon), General Radio (later GenRad), Lotus Development Corporation (now part of IBM), Polaroid, Symbolics, and Thinking Machines.
  In 1996, Polaroid, Arthur D. Little, and Lotus were Cambridge's top employers, with over 1,000 employees, but they faded out a few years later. Health care and biotechnology firms such as Genzyme, Biogen Idec, bluebird bio, Millennium Pharmaceuticals, Sanofi, Pfizer and Novartis have significant presences in the city. Though headquartered in Switzerland, Novartis continues to expand its operations in Cambridge.
  Other major biotech and pharmaceutical firms expanding their presence in Cambridge include GlaxoSmithKline, AstraZeneca, Shire, and Pfizer. Most of Cambridge's biotech firms are in Kendall Square and East Cambridge, which decades ago were the city's center of manufacturing. Some others are in University Park at MIT, a new development in another former manufacturing area.
  None of the high-technology firms that once dominated the economy was among the 25 largest employers in 2005, but by 2008 Akamai and ITA Software were. Google, IBM Research, Microsoft Research, and Philips Research maintain offices in Cambridge. In late January 2012—less than a year after acquiring Billerica-based analytic database management company, Vertica—Hewlett-Packard announced it would also be opening its first offices in Cambridge. Also around that time, e-commerce giants Staples and Amazon.com said they would be opening research and innovation centers in Kendall Square. And LabCentral provides a shared laboratory facility for approximately 25 emerging biotech companies.
  The proximity of Cambridge's universities has also made the city a center for nonprofit groups and think tanks, including the National Bureau of Economic Research, the Smithsonian Astrophysical Observatory, the Lincoln Institute of Land Policy, Cultural Survival, and One Laptop per Child. A group of start-up companies have emerged in Kendall Square since 2010.
  In September 2011, the City of Cambridge launched the "Entrepreneur Walk of Fame" initiative. The Walk recognizes people who have made contributions to innovation in global business.
caption: Buildings of Kendall Square, center of Cambridge's biotech economy, seen from the Charles River
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