The production, properties and purification of the novel carbon nanotubes have been systematically studied. A fully automatic electric arc carbon nanotube generator is designed and constructed. The state of the electric arc is monitored and adjusted by a computer to maintain a stable growth condition. The optimum conditions for the high yield and quality of carbon nanotubes were found in this apparatus. Nanotubes grown in the arc are found to be highly defective. These defects are ascribed to the tube-tube sintering due to the excessive heat in the arc. This sintering effect can be reduced through the use of a better water-cooled cathode but can't be eliminated. A method of purification of arc grown nanotubes was developed and was found to be highly effective. A growth model is also proposed based on properties of carbon nanotubes and the electric arc in which they were grown.