An operator-valued inner
function V is called scalar if {V (w) : |w| < 1} is a commuting family of normal
operators. Suppose that T is a bounded linear operator with ∥T∥≦ 1 and spectral
radius strictly less than one. Let VT be its Potapov inner function and define
UT= VTV T∗(1). The structure of nonnormal T for which UT is scalar is discussed.
An explicit characterization is given if the underlying Hilbert space is finite
dimensional. Examples are given for the infinite dimensional case. The relationship
between scalar inner functions and operators for which T∗T and T∗+ T commute is
examined.