CHICAGO,IL- While there is still general optimism about the U.S.economic environment overall, technology business executives are less confident today than six months ago, reports the Grant Thornton's Survey of U.S.Business.According to this national survey, 73 percent of technology respondents expect the U.S.economy to improve in the coming year, a slight decrease from the January 2004 survey which reported that 80 percent felt the economy would improve.Although economic recovery has been slower than expected, technology leaders still remain extremely optimistic about the growth of their own businesses, with 94 percent of respondents attesting they are optimistic - an increase from the January 2004 survey in which 88 percent reported confidence in the growth of their organization.

In addition to expectations of growth, U.S.technology business leaders are looking to capitalize on the agility of their organizations by developing a culture of innovation.While innovation has always been an important part of growth strategy, 44 percent of technology executives say innovation has become more important in the past year.Respondents understand that innovation - if it is to be profitable - must be treated with the same rigor as other areas of the business.As a result, technology companies have refocused their efforts on two major areas of innovation - changing internal processes to improve efficiency and cut costs (67 percent), and developing new products and services (52 percent).

The survey also found that customer satisfaction criteria have gotten tougher.As customers have come to expect companies to take additional measures to help them succeed, many technology business leaders now expand traditional boundaries to include other aspects of their customers' businesses.For instance, 79 percent of respondents, assisting with implementation is now part of the deliverable rather than a value-added service.In addition, the majority are also focusing more on delivering cost savings through innovation and customization (71 percent), as well as providing continued customer education, seminars and training (62 percent).

While once considered to be outside the scope of the traditional customer relationship, technology executives are now willing to make these investments because they have experienced the rewards, including strengthened relationships, as noted by 77 percent, and becoming a trusted advisor, as seen by 69 percent.

About the survey Wirthlin Worldwide, an independent market research firm, conducts the biannual Grant Thornton Survey of Middle-Market Business Leaders among more than 300 executives.To read the Grant Thornton's Survey of U.S.Business Leaders in its entirety, please visit www.GrantThornton.com/BLCSurvey.

About Grant Thornton
Grant Thornton International is the world's leading accounting, tax and business advisory organization dedicated to mid-size companies.Through its network of 585 offices in 110 countries, including 48 offices in the United States, partners of the member firms of Grant Thornton provide personal attention and seamless service delivery to public and private clients around the globe.Grant Thornton LLP's web site is www.GrantThornton.com.