Ten Best Cities for the Next Decade...Austin is No. 1 (MSN)

Though slowed by the recession, these US cities have flourished by fostering innovations that put Americans to work and keep the nation ahead of the competition.

In compiling Kiplinger's latest search for the nation's top cities, we focused on places that specialize in out-of-the-box thinking.  "New ideas generate new businesses," explains Kevin Stolarick, the research director at Martin Prosperity Institute and our numbers guru, who evaluated U.S. cities for growth and growth potential. "In the places where innovation works, it really works," he says.

In researching our 2010 Best Cities, it became clear that there are three elements to the innovation factor. Mark Emmert, president of the University of Washington, put his finger on two of them: Smart people and great ideas. But we'd argue that it's the third element -- collaboration -- that really supercharges a city's economic engine.

When governments, universities and business communities work together, the economic vitality is impressive.

And it's no coincidence that economic vitality and livability go hand in hand. Creativity in music, arts and culture -- plus neighborhoods and recreational facilities that rank high for "coolness" -- attract like-minded professionals who go on to cultivate a region's business scene.

The 10 cities on our 2010 Best Cities are not just great places to live, they're also great places to start a business or find a job.

Here's a closer look at the cities:

1. Austin, Texas

Austin is arguably the country's best crucible for small business. The city offers a dozen community programs to help entrepreneurs. Overlay that network with a dozen venture capital funds, about 20 business associations, incubators, educational opportunities and networking events. Mix these elements in what many call a classless society -- where hippie communalism coexists with no-nonsense capitalism -- and you've got a breeding ground for start-ups.

Top cities for new grads
Don't discount the fun factor: In the self-proclaimed live-music capital of the world, music and business creativity riff off of one another. The city's famous South by Southwest festival, where concerts, independent film screenings and emerging technology overlap, is a prime example.

To read the full MSN Money story, click here.