If you focus too much on your competition, you will inevitably follow them and stop being a leader. Instead, focus ahead on your own path.
Focusing your attention too fully on your competition is actually distracting you from what you need to be doing instead, namely designing and building innovative products for your customers.
By focusing on your competition to see what innovations they are doing, you are setting yourself up to be reactionary, and as you react to them and NOT them to you, they are the leader and you are the follower in that dynamic. That is obviously a weakened position to be in.
The best place to gather feedback from is your customers, and their feedback will help make your product better for future customers. In comparison, your competition are not providing feedback, but instead can become a source of anxiety.
I do not ignore my completion, as that is also dangerous, but I keep them in my peripheral vision, not in central focus. Let them worry about you, and you should focus on your own output.