Optical microcavities allow control over the interaction between light and
matter, thus making them an important testing ground for basic optical phys
ics. This review focuses on two of these interactions, spontaneous emission
and energy transfer. Emphasis is placed on the underlying concepts, which
are presented in the context of recent developments. Practical application
of the microcavity concept to devices is now well underway and a discussion
of these aspects forms an integral part of the review. This field is far f
rom mature and though much has been accomplished, many questions in this ar
ea remain, some of which are identified and discussed.