The properties of heterogeneous interfaces are modified essentially by the
presence of nanoparticles. We provide a model and give spectroscopic eviden
ce that nanoscale clusters exist which have a metallic core and a shell of
an almost perfect oxide. Such clusters produce a large dipole moment which
manifests itself as shifts in core levels as seen by photoelectron spectros
copy, as well as non-Ohmic rectifying behavior in the device electrical pro
perties.