I _think_ you are not being sarcastic, but apologies if I am misunderstanding. Allowing industry to externalize costs does not promote innovation. It does the opposite, as offloading those costs to others is effectively subsidizing the behaviour.
Yes on the sarcasm, you bring up a great point. True "innovation" would take into account the optimal outcome, but sometimes that has to be legislated in. As in many industries where regulation improves outcomes for society.
Subsidies are what stifles innovation.
I _think_ you are not being sarcastic, but apologies if I am misunderstanding. Allowing industry to externalize costs does not promote innovation. It does the opposite, as offloading those costs to others is effectively subsidizing the behaviour.