I'm not too worried about them stifling innovation. For one, it was stated elsewhere that they are working with Lambda school to get them certified, and for two, I think the fact that most of the self-driving car companies are working here now is a perfect example.
At first they experimented outside the state in areas with less regulation, but the state was happy to work with them to come up with a viable regulatory framework that still protects people while allowing innovation.
What industries do you think are being stymied by regulation in CA?
Are you familiar with the regs? Your conclusion seems to be based on no actual knowledge, just assumptions.
I mean there's a reason we don't allow everyone to perform surgery or fly commercial aircraft.