We often hear how San Diego is a great place for startups. Now there’s another report backing that up. Increased connectivity with the city’s main economic network and access to capital pushed San Diego to the fourth spot on the annual Innovation that Matters report by the US Chamber of Commerce and startup incubator 1776, up a notch from last year. The report ranked 25 cities on how they support new businesses in the health, education, energy, and smart-cities sectors.

“Sometimes overshadowed by Silicon Valley, San Diego has emerged as a major startup destination, especially for entrepreneurs looking to solve some of the world’s greatest problems,” its authors wrote. Boston, the Bay Area, and Philadelphia took gold, silver, and bronze, respectively.

“San Diego’s community of startups, civic leaders, VC, and educational institutions make for a supportive entrepreneurial environment, which fosters life-changing innovation and attracts top talent and from around the world,” says Mark Cafferty, president and CEO of the San Diego Regional Economic Development Corporation.

The report’s authors say local city leaders need to continue nurturing the relationships between startups and investors, mentors, and other supporters if San Diego is to maintain its standing.

They also pointed out where we have room to grow—industry specialization and access to talent. Another recent report by commercial real estate and investment firm CBRE ranked San Diego 19th of 50 top North American tech talent markets.