In my experience, markets tend to breed innovation because many companies are competing over the same space and being forced to provide new products that better meet their customers' needs. Where there's a monopoly, as is the case in most electrical and natural gas distribution or downstream in Canada, there's less of a market. There are effectively no competitors and less of a demand or a need to innovate. In addition, very frequently the return on the economic incentive is based on a return on capital or a return on assets, not on some measure that would incent innovation.
On February 12th, 2013. See this statement in context.