Bridging the Gap: How Public Trust and Investment Drive Innovation and Sustainable Local Governance

The way in which local public administration (LPA) drives innovation, develops sustainable infrastructure, and supports inclusive industrialization, shapes public perceptions of development and institutional legitimacy. This study analyzes how public investment, trust in municipal organizations, and future expectations interact in promoting outcomes aligned with SDG 9. The analysis is based on a survey applied to residents of various Portuguese municipalities and assessed through PLS-SEM. The results show that public investment strengthens positive perceptions of municipal development and increases trust in municipal organizations, contributing to more favorable expectations regarding future progress. These links reveal a cumulative process through which public action influences perceptions of progress and administrative capacity. The study deepens the understanding of the dynamics between investment, trust, and expectations, providing insights that can guide municipal strategies focused on innovation and sustainability.