The fundamental properties of matter are drastically changed due to quantum effects in nanoscopically confined particles. It presents the essence of nanoscience and hence is a cornerstone for the production of advanced materials and devices. The scope of this project is to explore semiconductor nanoparticles in 0-dim, so called quantum dots (QDs), which are the building blocks for advanced materials. We shall study QDs made of different semiconductors embedded in various dielectric materials. The main intention is to explore many of basic physical properties of such systems which are not clear yet and hence prevent their successful development and application. The several key issues that we shall explore are: a) the process of nucleation and growth of QDs, their self-assembly and self-organization. We shall study experimentally and theoretically nucleation growth and crystallinity of different QDs in various dielectrics, and possibility of superstructures formation. Once formed QDs present several serious challenges. The interface QD/dielectric and/or the structure of dielectric layers close to QDs as well as its impact on optical and electrical properties is still completely obscured. In this respect we shall study radiative and nonradiative recombinations of carriers in this region by PL and TRPL. A special effort will be given to theoretical modelling of interfaces, defect formation on such interfaces modeled with molecular dynamics and attempts to describe the transport properties with such modelling. Finally, electronic properties of such composite material will be explored by transport measurements and compared to several simulation models. Several models of unbiased and biased percolation will be explored and applied to this problem. Finally, formation of metal nanoparticles and their plasmonic effect will be explored and analyzed as a special approach to the light management.