There are two types of innovation. Random "out there" market ideas? Yes, because upstarts have to find something to upset the monopoly, so they're self-selected to have something interesting. But long-term, actual innovation? Pretty much only monopolies can afford that. That includes governments, and that includes R&D departments of various corporations that can stay cost centres for years before accounting notices.

There are of course exceptions - like Elon, who has and for whom the profitability of the company is only a secondary, supporting concern.