They're sitting at the centre of a web of software services that coordinate some unreasonable amount of the internet. They've definitely done something right, California might be hosting one of the most impressive economic clusters outside of China.

But that doesn't tell us much about the relationship between that thing and their regulations. The regulations might be supporting the thing, or the thing might be so successful that the damage being done by the regulations becomes tolerable. It's entirely plausible that if other states attempted that level of regulation they'd crumple like tissue paper because they don't have the economic power of California's IT sector to balance out the excess demands being placed on businesses.