This dissertation proposes a new approach to maximizing data rate/throughput of practical communication system/networks through linear precoding and power allocation. First, the mutual information or capacity region is derived for finite-alphabet inputs such as phase-shift keying (PSK), pulse-amplitude modulation (PAM), and quadrature amplitude modulation (QAM) signals. This approach, without the commonly used Gaussian input assumptions, complicates the mutual information analysis and precoder design but improves performance when the designed precoders are applied to practical systems and networks. Second, several numerical optimization methods are developed for multiple-input multiple-output (MIMO) multiple access channels, dual-hop relay networks, and point-to-point MIMO systems. In MIMO multiple access channels, an iterative weighted sum rate maximization algorithm is proposed which utilizes an alternating optimization strategy and gradient descent update. In dual-hop relay networks, the structure of the optimal precoder is exploited to develop a two-step iterative algorithm based on convex optimization and optimization on the Stiefel manifold. The proposed algorithm is insensitive to initial point selection and able to achieve a near global optimal precoder solution. The gradient descent method is also used to obtain the optimal power allocation scheme which maximizes the mutual information between the source node and destination node in dual-hop relay networks. For point-to-point MIMO systems, a low complexity precoding design method is proposed, which maximizes the lower bound of the mutual information with discretized power allocation vector in a non-iterative fashion, thus reducing complexity. Finally, performances of the proposed power allocation and linear precoding schemes are evaluated in terms of both mutual information and bit error rate (BER). Numerical results show that at the same target mutual information or sum rate, the proposed approaches achieve 3-10dB gains compared to the existing methods in the medium signal-to-noise ratio region. Such significant gains are also indicated in the coded BER systems --Abstract, page iv-v
