The state of art in the theoretical and experimental studies of transition metal doped oxides (dilute magnetic dielectrics) is reviewed. The available data show that the generic non-equilibrium state of oxide films doped with magnetic impurities may either favor ferromagnetism with high Curie temperature or result in highly inhomogeneous state without long-range magnetic order. In both case concomitant defects (vacancies, interstitial ions play crucial part.
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