This chapter addresses the perennial concern that regulation stifles creativity. Using historical analogies (e.g. GDPR) and fresh empirical evidence, we show how the EU AI Act can stimulate innovation through better data hygiene, user-centric design, and safer experimentation. Separate sections explore the distinct opportunities and constraints faced by SMEs versus multinationals, the competitive advantages of “compliance by design,” and the Act’s influence on research funding and academic curricula. The chapter concludes with strategic recommendations for turning regulatory compliance into an R&D accelerator.