Most regulations are meant to limit a person or organization's ability to do something, which almost by definition will limit creativity and potential innovation. The challenge is getting the right balance of freedom and regulation that people are suitably protected while also allowing for innovation. And, of course, that balance exists in different places for different people.

Complete de-regulation of a sector, say banking or medicine, would certainly encourage a lot of innovation. A lot of people would also be hurt in the process.