How can they benefit from innovation that has been stifled?

a) how are you measuring “innovation”?

b) how are you measuring the “benefit”, and for who?

Regulations and standardization can hold back an existing company from trying a new idea, however, they are also the only thing that creates true, lasting, interoperability, and interoperability is what let’s new companies enter markets.

i.e. Theoretically, Apple may be held back if they want to innovate their charging port because they have to make it compatible with USB-C.

However, now new companies that aren’t apple that want to innovate on cables and chargers can enter the market, and they’ll benefit from a consistent specified interface and not having to design a million proprietary variants, and they’ll be able to plan their products in a stabler, longer term environment, that will make it easier to attract investment.