By Frank HolmesNEW YORK ( TheStreet) -- Last weekend I had the chance to experience the thrill of Formula 1 (F1) Grand Prix du Canada in Montreal. Seeing the incredible fluidity and flexibility of every racecar, it got me thinking about how F1 has evolved over the past 60 years. Cars are now aerodynamic like jet fighters, designed with wings that use the same principle as an aircraft and tires that withstand tremendous forces. Even with all these incredible advancements in technology, rules and regulations have been streamlined to reduce costs and improve safety. Since 1994, there hasn't been a fatal accident in the motor sport. The ever-evolving racing rules seem to have improved competition as well. This year the first seven races have resulted in a different winner each time, breaking a historical trend of only a few drivers dominating the track. When asked about this phenomenon, Peter Sauber, the team boss of Sauber-Ferrari, says he thinks fans are "delighted with the unpredictability, the sheer variety and the unbelievably close competition.">p/>F1's fine-tuning of regulations to respect the risks and rewards of racing is the formula government policies should strive for when regulating businesses. Instead, as The Economist pointed out a few months ago, excessive regulations are acting as speed bumps today. Not only is the financial industry burdened with Sarbanes-Oxley and Dodd-Frank, companies in the telecommunications, materials and utilities are also highly regulated. Thoughtful regulation in moderation is needed to maintain healthy competition. Sporting events need referees and officials to keep the game fair and exciting -- no spectator wants them to control the outcome. Excess regulation, on the other hand, can dilute the efforts of entrepreneurs and result in fewer innovations, lower profitability and less job creation. Compare, for example, the performance of the telecom, materials and utilities sectors to Apple ( AAPL). The company has been the "winning driver" of the market over the past decade and its business operates in a less regulated environment. Shortly after his death, Bloomberg wrote that Steve Jobs was "not just a techie visionary, but the virtuoso executive who built the world's second-most valuable company after Exxon Mobil ( XOM)." As you can see below, Apple's market capitalization has grown so significantly that J.P. Morgan declared the company a "sector unto itself." AAPL is now bigger than all of the companies in the telecom sector, all of the materials stocks and all of the utilities companies combined, generating more profit on an earnings before interest, taxes, depreciation and amortization (Ebitda) basis than any of those sectors.