I agree that war pushes innovation the most, but I assume you don't want humanity to be in constant state of war. So how do you get innovation in peace time? I would argue if you're in a very competitive market and you're margins are 1-2% you cannot afford to go for innovation. Bell Labs which arguably is one of the most innovative places in peace time was the result of the AT&T monopoly. Most innovation comes out of monopolies or excess capital in peace time.