Optical technology plays an increasingly important role in numerous applications areas, including communications, information processing, and data storage. However, as optical technology develops, it is evident that there is a growing need to develop reliable photonic integration technologies. This will include the development of passive as well as active optical components that can be integrated into functional optical circuits and systems, including filters, switching fabrics that can be controlled either electrically or optically, optical sources, detectors, amplifiers, etc. We explore the unique capabilities and advantages of nanotechnology in developing next generation integrated photonic chips. Our long-range goal is to develop a range of photonic nanostructures including artificially birefringent and resonant devices, photonic crystals, and photonic crystals with defects to tailor spectral filters, and nanostructures for spatial field localization to enhance optical nonlinearities, to facilitate on-chip system integration through compatible materials and fabrication processes. The design of artificial nanostructured materials, PCs and integrated photonic systems is one of the most challenging tasks as it not only involves the accurate solution of electromagnetic optics equations, but also the need to incorporate the material and quantum physics equations. Near-field interactions in artificial nanostructured materials provide a variety of functionalities useful for optical systems integration. Furthermore, near-field optical devices facilitate miniaturization, and simultaneously enhance multifunctionality, greatly increasing the functional complexity per unit volume of the photonic system. Finally and most importantly, nanophotonics may enable easier integration with other nanotechnologies: electronics, magnetics, mechanics, chemistry, and biology.