We describe a reproducible technology for fabricating YBa2Cu3O7 step-edge J
osephson junctions on SrTiO3 substrates, We report on the electrical charac
teristics of the junctions at 77 K and the dependence on the ratio of film
thickness to step height. Single-layer gradiometers incorporating step-edge
junction de SQUIDs have been fabricated. We compare the performance of ide
ntical SQUID gradiometers based on our step-edge junctions and on 24 degree
s degrees SrTiO3 bicrystal junctions. Gradiometric SQUIDs (G-SQUIDs) incorp
orating step-edges have also been fabricated. We measured the effective are
a of several G-SQUIDs to be in the range of 1-2 mum(2) approximately two or
ders of magnitude lower than for conventional SQUIDs of similar inductance.
We demonstrate that when incorporated into a gradiometer the G-SQUID leads
to an improved performance in an unshielded environment.