San Jose was the first city to be established in California. After California became a U.S. territory in 1847, San Jose was the state capital from 1849 to 1852 and was incorporated as a city in 1850. It developed commercially as a supply base for gold prospectors and, when the railroad connected it with San Francisco in 1864, it became the distribution point for agricultural products from the Santa Clara Valley. Today, the city continues to be the distribution and food-processing center for the surrounding rich agricultural region, which produces seasonal fruits and grapes. More than 50 wineries grace the valley.
Silicon Valley is also one of the world's leading centers for medical treatment and research.
Heart transplants, gene splicing, and transportable baby incubators were developed there. San Jose has healthy retail, transportation, and tourism industries and is the primary center for real estate and industrial development in the area.