a. few anarchists would accept the assumption that we should hold on to our current "standard of living", which comes with a ton of undesirable things (alienation, depression, pollution, systematic injustices, etc etc etc).
b. capitalism =/= competition. further, capitalism limits innovation to certain more or less rigid categories that are understood to be profitable.
c. competition is not the only way to innovate. perhaps some kropotkin is in order?