I assume they are stating that we don't actually live in a pure capitalist society, or else your definition is wrong.

Implication is that the claim: "Because capitalism is the only system which incentives continual innovation" has no basis in reality. By the lack of answer to the posed question I'm guessing you are starting to agree?

Of course I don't agree, your question is worthless.

"Why would a for profit company invest into basic research without a clear goal to monetizing that research while their competitor is spending that money on marketing?"

The only form of R&D spend that cannot be monetised is that which fails to better meet consumer demand, which is a purposeless waste of money.

Rephrase your question so it make sense.