You wrote: "Since government innovates more slowly than private industries, government regulation tends to become outdated, going from common-sense prudence to

You wrote: "Since government innovates more slowly than private industries, government regulation tends to become outdated, going from common-sense prudence to arbitrary burden on innovation. " The space program spawned a tremendous amount of innovation. Public research universities throughout the nation innovate on a grand scale. The internet is an example of government innovation. Regulation does not reflect a lack of creativity. It reflects an acknowledgment of a problem and steps to address the problem. Sometimes side effects occur and are bad and the regulation needs to be reanalyzed. Sometimes there is regulatory capture (by private entities). Government had to mandate the use of seatbelts. This led to airbags because after the government made safety an issue innovations were made in this area. They probably would have been made without government intervention but government got the ball rolling and the innovations occurred sooner as a result of government. Regulations can be good, bad, or neutral. But talking about "non-coercive institutions" makes your view look extreme.