Knudtzon was born in Trondheim in Sør-Trøndelag; he was the sixth and youngest child of Hans Carl Knudtzon (1751–1823), a merchant and burgomaster, and Karen Knudtzon (née Müller, 1752–1818).
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Prior to his death, he bequeathed his entire library and several artworks to the Royal Norwegian Society of Sciences and Letters.
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He became a member of the Royal Norwegian Society of Sciences and Letters in 1821, and was its secretary from 1825 to 1831.
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After a brief visit to his sister in Nantes, he relocated to England, where he came in contact with poet Lord Byron and other leading figures in the national liberal movement.
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