66 of 100
BACK NEXT
66. San Jose, Calif.
Population: 895,535
Pro: Internationally renowned tech hot spot
Con: High cost of living

San Jose's first wave of dot-com glory days may be over, but the city remains world-renowned for its tech presence.

More than 6,000 tech companies make their home in the city, including Cisco Systems, Adobe, and eBay, and new businesses keep coming. One reason: San Jose embraces new businesses with a multitude of incentives. A 10-square-mile enterprise zone in the heart of Silicon Valley offers firms considerable tax breaks, from an 8.25% credit on state income tax for manufacturing equipment costs to a tax deduction on the net interest on loans. Eligible small businesses may also earn a 50% reduction on the excise taxes levied on new construction or renovation projects.

The other reason entrepreneurs stay in San Jose is simply that it's a nice place to live. Locals have in their backyard a range of museums, parks, and theaters; a revitalized downtown features fine restaurants and boutiques. Best of all, the mild climate boasts 300 sunny days a year - perfect for a round of golf on one of the city's many courses or a stroll through a nearby winery. -Peter McDougall

Interactive map: San Jose
Homes for sale Find homes for sale in San Jose


NEXT: 67. Honolulu

Last updated July 02 2008: 11:16 AM ET
More Galleries
Secrets to success from Smalltown USA Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More
Commuting is getting easier. Here's why The MobiPrize, conducted by SMART at the University of Michigan, recognizes innovation in global transportation. From microcars to auto rickshaws, these six startups are some of the standouts. More
A sampling of beers being made with traditional Latin flavors A small but growing number of craft breweries are including passion fruit, Mexican cinnamon and other traditional Latin flavors. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.