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A knockout animal is an organism in which a specific gene has been inactivated or "knocked out" through a genetic manipulation process. This is done to study the function of the gene, as the organism will lack the protein that the gene codes for, providing insights into its role in the organism's development and functioning.

A transgenic animal is an organism that carries a foreign gene (transgene) that has been deliberately introduced into its genome using genetic engineering techniques. These animals are often created for research purposes, as the overexpression or absence of a particular gene allows scientists to better understand the function and role of specific genes in living organisms.

Despite both being genetically modified organisms, knockout and transgenic animals are different in several aspects: 1. Purpose: Knockout animals are created to study the loss of function of a specific gene, while transgenic animals are created to observe the effects of the overexpression or introduction of a foreign gene. 2. Gene manipulation: In knockout animals, a specific gene is inactivated or removed, while in transgenic animals, a foreign gene is introduced and inserted into the organism's genome. 3. Phenotype: Knockout animals generally show a loss of function for a specific protein, while transgenic animals often exhibit the gain of function for a specific protein or trait due to the introduction of the foreign gene. In summary, the main difference between a knockout animal and a transgenic animal lies in the type of genetic modification applied: knockout animals have a specific gene inactivated, while transgenic animals have a foreign gene integrated into their genome.