The semiconductor nanocomposites based on Si nanocrystals in dielectric matrices attract a great amount of attention due to their ability for luminescence in visible and near-IR part of the electromagnetic spectrum. Si nanocrystals in sapphire matrix were formed by Si+ ion implantation with doses from 5×1016 to 3×1017 cm -2 at an accelerating voltage 100 kV and post-implantation annealing at 500-1100 d̀C for 2 hours. Depth distribution of lattice defects, impurities and Si nanocrystals, the peculiarities of interband electronic transitions were investigated by XPS and HREELS. The molecular orbitals and local electronic structure of the Al2O3 matrix with Si nanocrystals was calculated using an atomistic pseudopotential technique. The electronic structure of Si nanocrystals as determined from HREELS measurements is in good agreement with the theoretically calculated electronic structure for Si nanocrystals.