In this thesis, the strength of the LBIC system is enhanced in different aspects that includes its feasibility as a non-destructive characterization tool, the signal analysis and development of analytical solution to have better understanding on the defects and inhomogeneities in the quantum dot based hetero-structures for device applications, finally understanding its limits due to the size of the laser beam and interpretation of artefacts in the signal appearance due to the presence of co-devices. Chapter#1 provides the introduction and literature survey of the LBIC system. It covers the importance and area of application of the LBIC. Chapter#2 various tools and instrumentation are discussed briefly for the systems that are developed in the lab as well as standard tools utilised for the material characterization. A LBIC instrumentation a novel colloidal quantum dots (CQD) thin film deposition system is discussed. In the last part along with the standard characterization systems a software tool (semiconductor device simulator) is discussed, which is used to visualize and understand the LBIC profile that is obtained experimentally. Chapter#3 provides the information of colloidal synthesis of PbS and HgxCd1-xTe quantum dots. Device fabrication process is explained step by step for the following devices. p-n junction silicon diodes, PbS-CQD/Si hetero-structures, ITO/PbS-CQD/Al crossbar structures and HgCdTe-CQD/Si hetero-structures. Chapter#4 deals with the major constraints imposed on the LBIC due to the need of Ohmic contacts. To overcome this major limitation, in this work, the origin of the signal is studied with the remote contact geometry for silicon p-n junction devices. It was observed that the signals can be collected with the capacitively coupled remote contacts, where LBIC was ultimately demonstrated as contactless measurement tool without any compromise on the measurements and thus obtained physical parameters. The effect of finite laser beam size is also described, which was found to have effect on the actual dimensions measured with the LBIC images. LBIC utility is further enhanced with the Si/CQD based hetero-structure devices, which are the potential candidates in the evolving device technology to be utilized in various modular systems such as PDs and LED applications. Chapter#5 discusses the origin and possible mechanisms for lateral photo-voltage which is closely monitored in the PbS-CQD/Si hetero-junction device systems. Interestingly, it is observed that there are two different line profiles for n and p type Si substrates. Different mechanisms that give rise to this kind of profiles were found to be distinct and are related to the band alignment of the CQD/Si hetero-structure. It lead to the revelation of an interesting phenomenon and believed to be universally observed irrespective of the materials involved in the formation of hetero-junction. Simulations and experimental results are quite consistent and in agreement with each other, which confirm the underlying physical mechanism that connects the LBIC anomalies with the band alignment. Chapter#6 deals with the spatial variations in the transverse photocurrent in the PbS-CQD film which is studied as a function of applied bias. Analytical equation is setup for the photocurrent in the CQD film under applied bias with the help of available transport mechanism and equations from the literature. The spatial non-uniformity that exists in the photocurrent proved to be the result of spatial inhomoginities in the physical parameters. By correlating the spatial data to the analytical equation, it is shown that the inhomoginities can be predicted. This approach is important for the devices, where monolithic detectors are fabricated by depositing CQD film on Read-Out-Integrated-Circuit (ROIC), where the manifestation of non-uniformity can be understood and probably fixed. Chapter#7 HgCdTe CQD based devices are studied for the purpose of photo-detector applications in MWIR (3  5 μm) region. HgxCd1-xTe Colloidal quantum dots are technologically important due to their wide absorption range that covers different regions of the atmospheric window. HgxCd1-xTe are successfully synthesised, which covers the absorption edge up to ~6.25 m in the IR region. Absorption and photo-response studies are carried out on HgxCd1-xTe/Si hetero-junctions under incident IR radiation. It is observed that the band gap of the quantum dots can be tuned easily by controlling the growth time as a parameter, thus moulded HgxCd1-xTe CQD/Si hetero-structures were found to have good photo-response. Chapter#8 the summary and the future direction and scope of the work is discussed. This includes the interesting observations during this thesis work which are not reported here in details.