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While knowledge discovery often refers to the process of discovering useful knowledge from data, data mining focuses on the application of algorithms for extracting patterns from data. Knowledge discovery seeks to find patterns in data and to infer rules (that is, to discover new information) that queries and reports do not reveal effectively. Thus, knowledge discovery has a R&D flavor and data mining an operational process one. Data mining is a basis of knowledge discovery.
Chung et al. (Wed,) studied this question.