Republic is a 'supergrowth' economy

The Republic ranks among the world's top "supergrowth" economies, with a greater number of innovative companies per head of population than any other eurozone state, according to a survey.

Eighteen per cent of businesses here are defined as "supergrowth", ranking the Republic behind only Sweden (24 per cent), the US (22 per cent), India (21 per cent) and Britain (20 per cent), but ahead of Germany and France (8 per cent each), the Grant Thornton study finds.

"Supergrowth" firms are defined as those with a heavy spend on marketing and technology, a dislike of red-tape and a greater likelihood of having women in senior management positions.

Nearly half of supergrowth companies have two or more women in senior management roles, compared to 34 per cent for businesses as a whole.

They also get paid quicker, with the average sales invoice period of 42 days, against a general figure of 46 days.

Companies in Japan, Mexico and Turkey are least likely to be classified as supergrowth, with only 2 per cent meeting the definition. The global average is 15 per cent. Other stragglers include Hong Kong, Italy and South Africa, all averaging at 12 per cent.

Mr Gearóid Costelloe, partner with Grant Thornton, said : "The leading countries for supergrowth companies are those that combine access to capital with innovative management practises.

"The importance of management training should not be underestimated and you will note that the top business colleges and development programmes all come from the leading countries."

The survey also ranked the Republic as one of the world's leading exporting economies. It showed that overseas sales account for more than a quarter of turnover for 63 per cent of Irish companies in 2003, against a global average of 38 per cent and ahead of the rest of the euro zone.

The Philippines emerged as the leading exporting nation, with a 76 per cent showing, followed by Hong Kong (71 per cent), Pakistan (70 per cent) and Taiwan (66 per cent). Sweden was the top European exporter (64 per cent). France and Germany scored 38 per cent each.

Companies in the Republic are also considering transferring operations abroad in ever greater numbers, according to the survey. Irish businesses rated eighth in a list of firms planning to move operations overseas. Seven per cent of companies here plan to take this option, against a global average of 5 per cent.

However, Irish firms are relatively downbeat about turnover prospects compared to many other countries.

Only 49 per cent of respondents here expect revenues to increase in 2004, against a 58 per cent international average. Indonesia's business community was most upbeat, with 90 per cent anticipating an upswing, followed by the US (82 per cent), Turkey (81 per cent) and India (80 per cent).

Within the EU, the most optimistic were Greece (69 per cent), Britain (60 per cent), Sweden and Spain (58 per cent each).