The lights are on at Fenway Park for the MLB American League baseball game between thReuters

Bostonis the U.S. city best placed to capitalize on the shift to adigitaleconomy, with the tech-centered San Francisco Bay Area second as it lost ground because of worsening quality of life, areportsaid on Wednesday.


The analysis of 25cities' competitiveness by the U.S. Chamber of Commerce Foundation and others said it aimed to show which are ready for thedigitalrevolution expected to transform every industry, from robotics to healthcare.


The analysis, "Innovation That Matters 2016," rankedcitiesin six categories: talent; capital; industry specialization; culture, such as quality of life and regulation; and ties among entrepreneurs, universities, corporations, governments and others.


"The wake that this will leave behind has the potential to either be disastrousor game-changing for every city in the country," Donna Harris, the co-chief executive of 1776, a Washington start-up fund that helped write thereport, said on a conference call.


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AfterBostonand the Bay Area, the top 10citiesin order were Denver; Raleigh-Durham, North Carolina; San Diego; Austin, Texas; Los Angeles; Philadelphia; Washington, D.C.; and New York.

California's Bay Area, home to Silicon Valley, was by far the leader in overall start-up activity. The region had 6,000 business launches from 2011 to 2015, twice the number of second-placed New York.

The Bay Area also has more money invested and the most tech talent, thereportsaid.

But the region "is becoming too cutthroat to inspire success," thereportquoted area entrepreneurs as saying. They said the area'sdigitalsector was not well-integrated with local universities and communities.

The Bay Area's quality of life also ranks 22nd among the 25cities, possibly because of the rising cost of living, thereportsaid.

TheBostonarea, home to Harvard University and the Massachusetts Institute of Technology, ranked third in start-ups, but finished on top of the list because of greater cohesiveness among universities, institutions and residents. It also boasts a fifth-place ranking for quality of life.

Thereportsaid thatdigitalhealthcare was by far the biggest sector for start-up businesses, even though the Bay Area,Boston, Los Angeles and New York showed an even breakdown across industries.

Besides the U.S. Chamber of Commerce Foundation and 1776, thereportwas co-authored by Free Enterprise, an online Chamber magazine.