Boston may be short on Fortune 500 companies, but that doesn’t stop it from excelling in technological growth. A recent report by Innovation Leader Magazine labeled Boston as number two on its 2017 list of the top ten cities for innovation in America.

The report took into account how many research and development firms each city has, how many trend-setting companies have large networks in the area and the frequency of networking events. It also looked at startup density and how many top-tier universities are located in the area.

Boston is home to some of the world’s most prestigious universities, and it’s not uncommon for students from institutions such as Harvard and Massachusetts Institute of Technology to stay in the area post-graduation. In fact, notable professionals such as MIT graduate and Dropbox founder Drew Houston often visit their alma maters for campus networking events and presentations, according to the report.

Major corporations such as General Electric and Gillette have chosen to place their headquarters in Boston. Boston’s Kendall Square even houses major offices and innovation centers for some of the country’s primary biotech and pharmaceutical companies. Notable examples include Johnson & Johnson, which is the world’s largest independent biotech company.

Boston is also home to a variety of startup-friendly organizations, which is a factor that helps the city bridge the gap between well-known corporations and developing businesses. Boston’s LabCentral offers high-end equipment to emerging companies, and the accelerator program MassChallenge has now expanded to multiple countries outside of the United States. The city will also see a variety of innovative businesses emerge this summer, such as MIT’s The Engine. The incubator will use $150 million to assist startups related to “tough tech” such as robots and artificial intelligence, according to the report.

Of course, Boston’s status as a hub for well-paying jobs has an effect on housing prices. Well-educated graduates of local colleges are taking up an inordinate amount of housing within the city, which has pushed up demand and therefore housing prices. Despite that, Boston is considered a good city for college grads, according to one study.