1. A cosmid is a type of plasmid vector that contains sequences from bacteriophage lambda, specifically the cos sites. This allows DNA fragments up to 45kb to be packaged into phage particles and transduced into bacteria.
2. Cosmids are developed by combining features of plasmid and phage vectors. They can accept large DNA inserts through packaging and transduction while also replicating stably inside bacteria like plasmids.
3. Cloning with cosmids involves inserting DNA fragments into the cosmid, ligating to form concatemers, in vitro packaging into phage particles, and transducing the particles into bacteria where the cosmids replicate as plasmids.