Capitalism hasn’t ever “created” anything. Labor does. Capitalism is just the way in which that labor is organized, and its organized poorly.
Socialist systems wouldn’t do away with competition in design, because people would still compete for recognition or for the drive of creation itself. Capitalism is a system about maximizing profits, to which creating something new or worthwhile is only peripheral — in many places it fundamentally stifles this.
I would offer as an example graphing calculators. The basic design of the TI83 has existed for 20 years and it still costs $80, despite its processor now being worth maybe $2. This is because the entire market is so entrenched into only one product, even reasonable competitors with better products are stifled out of the market. This wouldn’t happen in a socialist system.