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The phrase "stimulate competition" is correct and usable in written English.
You can use it to refer to the process of encouraging others to enter a competition or “up their game”. For example, "The government launched a new policy to stimulate competition among small businesses in the region."
Exact(56)
It is now introducing measures to stimulate competition.
"Far from trying to foreclose the market, we are trying to stimulate competition to grow demand".
They stimulate competition in an endeavour that is often celebrated as collaborative.
Above-average growth in profits should stimulate competition, which should slow the successful firm's growth.
Emulation was encouraged in the class, which was often divided into two groups to stimulate competition.
In April, Congress passed a law intended to stimulate competition at La Guardia Airport and increase service to small communities.
A stated goal of the 2010 law was to increase "consumer choice" and stimulate competition among insurers.
Similar(4)
The coming of jet transport stimulated competition.
Deregulation is stimulating competition to manage Japan's vast savings, he reasons.
While dismembering Ma Bell may have stimulated competition, few would argue that it has brought us lower phone rates.
Stimulating competition this way will be more effective in increasing transparency and cutting prices than Labour's complete unpicking of vertical integration, which might push prices up.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com