Recombinant DNA technology allows for the identification, isolation, modification, and re-expression of genes. The process involves isolating a gene of interest and inserting it into a bacterial plasmid using restriction enzymes and DNA ligase. This recombinant DNA is then inserted into bacteria via transformation. Key steps include using restriction endonucleases to cut DNA at specific recognition sequences, and bacteriophages' ability to infect and destroy bacteria unless their DNA is first destroyed by the host's restriction enzymes.