Ann Arbor has it all: the University of Michigan, great shopping, bars and restaurants and amazing concert venues. It also has a vitality that few college towns across the country can boast. It's the kind of city that draws in undergrads and then keeps them for good.

Toss a rock into the air and it'd be hard not to hit a cafe, bistro, or high-tech startup. From its ever-thriving summer Art Fair to its venerable Film Festival, the city consistently tops national quality of life surveys --Forbes, Money/CNN, Sperlings, the list goes on and on. Its school system is first rate, green spaces dominate the landscape and nearly 70% of the population holds a college degree. This small but mighty city is Michigan's leader in innovation.