I don't think we're disagreeing, but I'm thinking of like a somewhat friendly rivalry between, like, two teams of tool makers to outdo each other in design or production efficiencies. Like the kind of stuff that people get up to at work or play, naturally.

I'm no economist, but that doesn't sound like market competition to me. At least there is no driving force behind it, other than human nature, or maybe like an ad hoc competition for kudos or esteem.