Can innovation die in an industry?

At Bleacher Report, they asked an odd question: Is innovation over for Indy 500? It pointed out that throughout the years, this famed past time has given us many innovations: Aerodynamic downforce, raised cockpit engines, and energy deflecting crash structures. The last true innovation given to us by the Indy 500 was the SAFER Barrier. Since the Indy and NASCAR leagues split into two, competition has risen and the innovative ways have since stopped.

This article made me stop and think. Innovation is needed for companies to stay ahead of the competition. Have you been in a situation where innovation has just stopped? Is this a healthy thing for industry competition, no matter what industry you are in? What are your thoughts?