Look at the FDA, where it's notoriously bogged down in red tape, and the incentives slant heavily towards rejection. This makes getting pharmaceuticals out even more expensive, and raises the overall cost of healthcare.
It's too easy to say no, and people prioritize CYA over getting things done. The question then becomes how do you get people (and orgs by extension), to better handle risk, rather than opting for the safe option at every turn?