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Bethlehem, Pa.
Bethlehem, Pa.
With the decline of its steel industry over the past two decades, Bethlehem has worked hard to encourage its burgeoning local tech community. Numerous startups have sprouted in recent years, thanks in part to the city's two hospitals and two local colleges.

New technologies currently in development range from computer chips to instruments used in truck-tire manufacturing. Ben Franklin Technology Partners, a state-funded program based in Lehigh University, works with early-stage tech firms across 19 counties, awarding grants and helping companies find everything from funding to skilled workers and technology. The city also provides support, working with local groups to offer low-interest loans and enterprise-zone incentives.

NEXT: Folsom, Calif.

Last updated March 26 2008: 11:55 AM ET