Look a little closer, though, and you'll see a region using the wisdom of experience and a determined resolve to make sure the good times don't slip away too quickly--if at all.

Whatever mass-manufacturing capabilities Western Europe once had have largely moved eastward over the last five to 10 years. Faced with this shift, especially in the computing, communication and consumer equipment sectors, Old Europe's high-tech players are trying to remain relevant in the key areas that have long differentiated them. They are focusing on high-complexity, low-volume niche manufacturing; design and product development innovation; value-added services; and customized supply chains.

Even so, most industry executives acknowledge that Western Europe cannot match the low-cost competitive advantages available to manufacturers transplanting facilities to Eastern European countries and Far Eastern destinations such as China, Thailand, Indonesia, Malaysia and Vietnam.

"No doubt many of the questions and concerns being raised now in Europe can be boiled down to a single word: competitiveness," said Enrico Villa, executive vice president and European regional director of STMicroelectronics NV (Geneva). "How is Europe going to compete as a market, as a region, and as a player in the electronics industry?"

The many faces of Old Europe
Although Europe is typically seen as a unified region under the European Union's flag of common trade and currency, layers of complexity make it a challenging market to serve, work in and maintain, according to industry experts.

Language barriers are the most common problem at high-tech companies, along with differences in tax laws and end-user device preferences. Adding to the challenge of doing business here are factors such as managing EU expansion, developing noncompetitive practices between existing and prospective member states, and leveling the playing field with other regions, particularly Asia, where attractive tax incentives are luring R&D and manufacturing funding.

"In many ways, the European market is much more complex than other geographies. There are multiple languages, different regulations and a number of ways to bring products to market," said Didier Givert, the lead director of Pittiglio Rabin Todd & McGrath's Paris office. "Electronics companies doing business here have to develop complex solutions to handle this level of complexity. And managing that complexity has long been one of Europe's core competencies."

This competency has given Europe an advantage in adapting to the ever-changing electronics industry. For example, since Europe's sophisticated consumer base not only embraces new technology, but is also willing to spend money on it, users demand more from the products they buy. This spurs creative design and product innovation, a major element in Europe's competitive portfolio, which, in turn, draws on the strong engineering talent pool in Western and, for that matter, Eastern Europe. New products prompt more spending, which leads to more innovation and a higher level of specialized services--an expertise European companies and multinationals can transform into bigger profit margins.

"One strength the Western European market is likely to develop is its ability to offer more services," said Lorcan Sheehan, senior vice president of marketing at ModusLink Corp., a Waltham, Mass., company specializing in supply chain solutions and services.

"If you look at past trends and how the old product companies-- like IBM, for instance--evolved, you'll see that they became service-oriented companies," Sheehan said. "They realized that it wasn't just the product that had value, but the services and after-sales support they put around it. We see this happening quite a bit in Europe."

Moreover, a fairly stable economic climate fuels the design-through-after-sales-support cycle.