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78. San Luis Obispo, Calif.
Population: 45,015
Pros: Beautiful scenery, talented labor pool
Con: High cost of living

Sunny San Luis Obispo boasts a mild Mediterranean climate, vibrant retail, and beautiful views - as well as one of the most tech-savvy populations around. The city is home to the prestigious Cal Poly University, creating an enviable talent pool for local businesses in addition to breeding a youthful culture.

But San Luis Obispo is wired in more ways than one: The area's fiber optic lines create superior connectivity. Not surprisingly, high tech businesses flourish, as well as engineering and architecture firms. "The lifestyle here attracts creative, entrepreneurial types," says David Garth, president of the San Luis Obispo Chamber of Commerce. -Mina Kimes

Interactive map: San Luis Obispo
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NEXT: 79: Nashville, Tenn.

Last updated July 02 2008: 11:16 AM ET
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