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Do we need scarcity?
Only a small degree of scarcity is needed to promote competition and innovation - after all, human appetites are never completely satisfied.
Moreover, there are other drives such as curiosity, altruism, desire for activity, and the love of a challenge, which also contribute to the drive for competition and innovation.
Barriers to competition and innovation are also significant - lowering these barriers will have a similar result in boosting these factors as any theoretical benefits of scarcity.
Alternate ways of thinking
Abundance and thrivability emphasize a positive outlook for humanity, and the meeting of human needs. Resilience, while emphasizing the challenges that we face, addresses these largely by finding ways to increase the abundance in our lives, to create buffers against shocks.