The innovation going on today? Do you mean the research being done by universities, or the race to make the cheapest products? Because research done by universities isn't financially motivated (in the sense that, if financial motivation were to disappear, they would still be doing it), and the race to make cheapest products isn't something I like.
Or by "innovation" you might mean marketing. Every company wants their product to seem like the best, so they make small changes, advertise it as something groundbreaking, and people are left with the impression that the new product is better than the old one.
Why don't you like the race to make the cheapest products? I guess you're willing to spend $5,000 to buy a computer with a 300mb harddrive, 4mb of memory and a 16Mhz processor?
The computer market is a really nice example of the fact that this works.
What happens when you reach the point that prices can't be lowered anymore? You get a Coke vs. Pepsi situation and perfect competition. Everyone wins.
Maybe your Canadian schools are special but from my experiences and what I've read about the experiences of others, schooling will generally show you why "teamwork" doesn't work. One person will end up doing 90% of the work while everyone else reaps the rewards.
This is why capitalism works and so many people like it, when one person does 90% of the work they get 90% of the rewards. It also doesn't prevent teamwork, so instead of forcing people to play nice and getting crap as output you get people who want to work together and awesome outputs.