The nature and applications of optical materials have evolved rapidly in re
cent years. Their role as passive optical elements in free space has been a
ugmented by so-called photonic systems. These can have many active componen
ts-oscillators, amplifiers, frequency converters, modulators, switches, rou
ters and so on-most of which rely, to some degree, on optical field confine
ment. The design of appropriate materials for this new technology involves
progress on two separate levels. There is a need both for the optimisation
of microscopic electronic properties and for the separate control of bulk o
ptical parameters on the scale of optical wavelengths. This article uses se
veral examples to illustrate selected areas of current activity under both
these headings. It also emphasises the need for more general methods for cr
eating optical scale microstructure.