Have you been human before? competition for resources and status is an instinctive trait.

It rears its head regardless of what sociopolitical environment you place us in.

You’re either competing to offer better products or services to customers…or you’re competing for your position in the breadline or politburo via black markets.

Even in the Soviet Union there were multiple design bureaus competing for designs of things like aircraft. Tupolec, Ilyushin, Sukhoi, Mikoyan-Gyurevich (MiG), Yakolev, Mil. There were quite a lot. Several (not all, they had their specialisations) provided designs when a requirement was raised. Not too different from the US yet not capitalist.

Unfortunately it's called war and it appears to be part of human nature.

Not really, it's possible with any market economy, even a hypothetical socialist one (that is, one where all market actors are worker-owned co-ops).

And, since there is no global super-state, the world economy is a market economy, so even if every state were a state-owned planned economy, North Korea style, still there would exist this type of competition between states.