Will future pharma companies bother with creating new drugs if they have to get FDA approval? Will engineering companies bother drafting new projects if they have to pass safety inspections?
Every other industry thrives despite regulations. It’ll be no different for future tech companies.
If you have ever worked in pharma you know that literally thousands of promising drugs have been left on the table because the regulatory costs/burdens to see the ideas through are simply too high. It is maybe one of the greatest travesties in the sphere of human health.
At this point, only the easiest and most obvious wins are worth pushing through the regulatory gauntlet. Innovation has been strangled. It's not even worth trying something unless you are 110% certain the costs will be recouped and it's worth spending billions to get it approved.
Every other industry thrives despite regulations. It’ll be no different for future tech companies.