We have investigated the second-order nonlinear susceptibility in self-asse
mbled quantum dots. The nonlinear susceptibility associated with intraband
transitions in the conduction band and in the valence band is theoretically
estimated for lens-shaped InAs/GaAs self-assembled quantum dots. The confi
ned energy levels in the dots are calculated in the effective-mass approxim
ation by solving the three-dimensional Schrodinger equation. Giant values o
f nonlinear susceptibility, about six orders of magnitude larger than the b
ull GaAs susceptibility, are predicted. We show that this enhancement resul
ts from three key features: (i) the achievement of the double resonance con
dition, (ii) the specific polarization selection rules of intraband transit
ions that allow both in-plane and z-polarized transitions with large dipole
matrix elements to be optically active, and (iii) the small homogeneous li
newidth of the intraband transitions. The conclusions of the calculations a
re supported by the measurement of the midinfrared nonlinear susceptibility
in the valence band. The measurements have been performed using a picoseco
nd free-electron laser. Both chi(zzz)((2)) and chi(zxx)((2)) components of
the susceptibility tensor are observed. A satisfying agreement is found bet
ween theoretical and experimental values.