Toronto ranks as the second-best city in the world for business, life and innovation, a new report claims.

The report by PriceWaterhouseCoopers and the Partnership for New York City looked at 26 of the world's top cities, identifying greatness in terms of growing, retaining and attracting talent.

Beat out for the top spot by New York City — and followed closely by surprise contender San Francisco — Toronto stood out among the world's "metro powerhouses" in areas of business opportunities, culture, livability and innovation. The study named Toronto a "beta" city, not yet "part of the conversation with London, Paris and New York," but with the "building blocks of a superlative international city."

The Ontario capital's "smart immigration policies" helped set it apart from the competition.

The only Canadian city to make the list, Toronto was ranked #1 in quality of living, clean air, business-trip index, skyscraper construction, and sports and leisure. The city was #2 in the area of entrepreneurial environment. The main criticism of the city came from its cost of public transportation.

The 26 most successful cities, from best to "still great but not the best":

New York City Toronto San Francisco Stockholm Sydney London Chicago Paris Singapore Hong Kong Houston Los Angeles Berlin Tokyo Madrid Seoul Beijing Abu Dhabi Shanghai Mexico City Moscow Santiago Istanbul Sao Paulo Johannesburg Mumbai

Read about each city's ranking over at The Atlantic.