A desktop design and manufacturing system for binary diffractive elements, MacBEEP, was developed with the optical researcher in mind. Optical processing systems for specialized tasks such as cellular automation computation and fractal measurement were constructed. A new family of switchable holograms has enabled several applications for control of laser beams in optical memories. New spatial light modulators and optical logic elements have been demonstrated based on a more manufacturable semiconductor technology. Novel synthetic and polymeric nonlinear materials for optical storage are under development in an integrated memory architecture. SBIR programs enable creative contributions from smaller companies, both product oriented and technology oriented, and support advances that might not otherwise be developed.