Capitalism isn’t necessary for innovation. It is just the private ownership of things. Spez didn’t make Reddit great, for example. Other people did. Spez is just a do-nothing owner who is now the mouth piece for bigger do-nothing owners looking to wring out maximum profit from unpaid laborers.
I’d argue that capitalism stifles innovation, which is why everyone agrees that you need competition. A market economy. And broad anti-trust regulations, since capitalism is inherently authoritarian since it is a top-down hierarchical structure. A free-ish market is what allowed us to innovate so quickly.
But Lemmy is outside of that since it isn’t driven by profit.