In 1918, the company began researching optical glass but suspended operations when it could not fully address several technical difficulties. However, in 1922, when self-sufficiency of optical glass to supply domestic production of optical instruments became a necessity, research was resumed in earnest. Thus, in March 1923, to enable parallel research of both the theoretical and the practical, the company built glass research facilities in three sections including the No. 1 melting wing in its Oi Dai-ni plant, and installed facilities including a 500kg melting furnace, four cooling kilns and two test furnaces (20kg and 7kg capacities). The company then began test-melting optical glass around May of the same year, and performed its first kilning using a 350kg crucible in June.

The 1921 MIKRON ultra-small-prism binoculars were one of the first binocular models developed, designed and manufactured by Nikon. They were acclaimed for their compactness and high functionality, and are still a popular model after having been reproduced for sale in 1948 and 1997.

Nikon has been involved in the development of the microscope since its founding, and microscopes are listed as production items in its articles of incorporation. Pouring efforts into development of the microscope, one of the specialists brought in from Germany was Heinrich Acht, an engineer with rich experience in microscope design. Acht was active in the design of microscope objective lenses, and improved lens precision by adopting and improving on new German-style systems. By bringing these efforts to fruition, the company released its JOICO Microscope in 1925. With its 765x magnification this instrument was a groundbreaking microscope for its time.

In 1931, an 8-inch astronomical telescope was installed in the roof observatory dome on the newly completed Ueno wing of the Tokyo Science Museum. This was known as the 20cm equatorial refracting telescope and was the first full-fledged model of its kind to be produced in Japan. It boasted the largest caliber compared to other Japanese-made telescopes of the time. The device underwent major modifications in 1954 and continued to convey the fascination of the heavens to visitors for a total of over 70 years, the longest ever in Japan, until 2005. The telescope is now on permanent display in a zone called the Exploring the Universe located on basement level 3 of the Global Gallery at the National Museum of Nature and Science.

NIKKOR lenses were born of the strong desire of Japanese designers to domestically produce photographic lenses, for which the nation had up till that point been reliant on other countries. Designers went to Europe to observe its optical industry, and devoted their time to gathering information on photographic lenses, visiting camera store after camera store in Berlin. Finally, after obtaining samples, the designers returned to Japan, which is when the real struggle began.

Although modern computers can now be relied upon, lens design involves various complex calculations. Even painstakingly produced prototypes might not provide the expected image quality when used to shoot photographs, and compared to the current era, there were far fewer types of glass available for lenses. The company engaged in research by means of disassembly, measurement and assembly experiments following precision aberration measurement testing.

After these exercises in trial and error, the company produced its first lens in 1929, the Anytar 12cm F4.5. Then followed the successful development of a range of lens models, while considering a brand name for these products, as there were now definite prospects for photographic lens manufacture. Hence, combining the "NIKKO" abbreviation of the "Nippon Kougaku" company name with the letter "R" often used as a suffix for photographic lens names at the time, the company settled upon the NIKKOR brand name. This name was registered as a trademark in 1932.

NIKKOR lens history began in 1933 with the delivery of lenses designed to be used in aerial photography for map-making. These lenses were thus called "Aero-NIKKOR" with the prefix indicating their intended aerial purpose. The company first supplied NIKKOR lenses including a 70cm F5 and an 18cm F4.5 for compact aerial photographic applications.

From its historic beginnings, the NIKKOR range has continued to develop, and has grown to become synonymous with Japan's leading high-performance lenses.