Corporate spending is down, said Smith, as companies cut back.
Tax credits for corporate spending on research and development have been around in one form or another since 1981.
By the middle of the year, they say, low interest rates and healthy corporate spending will have the economy growing nicely once again.
Corporate spending to influence platforms or outcomes is another matter.
So its results are closely watched as a barometer of corporate spending on technology.
In 2005, corporate spending on information technology will rise less than 4 percent, the Goldman analysts predicted.
Corporate spending on equipment and software increased 15.4 percent in the quarter, the biggest jump since early 2000.
The increase was led by corporate spending on equipment that is broadening the economic recovery.
The Bush administration has claimed that cutting taxes on dividends would increase corporate spending.
Key areas of the economy, such as housing, auto purchases and corporate spending on new equipment, should pick up quickly.