Sure, it happens sometimes. However, the goal is never innovation for the sake if innovation. It's innovations to create profit. The idea is you invest into one of these ideas that then creates a monopoly that can practice anti-completive behaviors to create more profit.

For example of something better, look at research universities. They are normally outside of capitalism and create innovation primarily for the goal of advancing knowledge of a subject or to solve some issue. It's rarely purely for profit to sit on the thing after it's created and ensure no one else can use it.