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Several countries are planning urban districts as knowledge and innovation spaces (KISs) to achieve economic and cultural goals. The literature shows that urban planning qualities such as place quality play a paramount role for the knowledge-based economy to flourish. This study develops a theoretical framework based on local experts' opinions to assess KISs developments. Following the development of this framework, this study identifies major criteria for KISs in urban planning, and consequently the most effective field-based indicators for KISs development at the precinct scale. This research has been developed in two steps using qualitative and quantitative techniques. In the first step, a desk study is used to identify KIS related indicators from literature. Next, by using a three-round Delphi survey, the local experts have modified, validated and prioritised these indicators to form the theoretical framework. Results show the significant interrelation of place qualities and the innovation concept in the context of good governance. Good governance has been proved to be one of the major foundations for this framework, facilitating effective urban management and planning by taking advantage of innovation spaces. The suggested methodology and presented framework assist policymakers and planners to deliver the localised KIS developments in precinct scale. [ABSTRACT FROM AUTHOR]