To meet the demand for continuous increase in data traffic, full usage of polarization freedom of light is becoming inevitable in the next-generation optical communication and datacenter networks. In particular, Stokes-vector modulation direct-detection (SVM-DD) formats are expected as potentially cost-effective method to transmit multi-level signals without using costly coherent transceivers in the short-reach links. For the SVM-DD formats to be practical, both the transmitter and receiver need to be substantially simpler, smaller, and lower-cost as compared to coherent counterparts. To this end, we have recently proposed and demonstrated novel SV modulator and receiver circuits realized on monolithic InP platforms. With compact non-interferometric configurations, relatively simple fabrication procedures, and compatibility with other active photonic components, the proposed devices should be attractive candidate in realizing low-cost monolithic transceivers for SVM formats. In this paper, we review our approaches as well as recent progresses and provide future prospects.