The major contributions within the field of urban studies are biased towards large cities, and the effect of creativity and knowledge on the development of big metropolitan cities and regions have been emphasized. However, very few studies have recognized the available potential of small and medium-sized cities (SMSCs). This study identifies the key determinants (from existing literature) that are required to implement the knowledge-based strategies in SMSCs. Moreover, what are the important sources of growth in SMSCs? The findings of this study show that the role of local authorities, support from urban governments, community engagement, available endogenous resources, and amenities are the key factors that are required to implement the knowledge-based strategies in SMSCs. Furthermore, the creative workforce, entrepreneurship, innovation, technology and higher educational institutions are the important determinants of growth in SMSCs.