Competition is also inherently inefficient though. It involves having at least two organisations doing the same thing, which likely involves a lot of duplicated effort.

It also leads to organisations spending money on things like advertising, which serve little purpose for the consumer, and exist only to improve their position relative to their competitor.

Competition can be better in some cases, but I'm increasingly sceptical of the assumption that it's always better, since it has these downsides.

And I don't think there's any inherent reason why a government organisation can't innovate, they usually just don't have the resources to risk doing anything they can't be sure will work. I suspect there are plenty of people in most government agencies who have ideas about how to make things more efficient, if only they had a bit of flexibility in their budget to try them. This is largely a political issue, not an organisational one.