Ammo Development Questions?

I am certainly no business giant of understanding but I have a few questions that maybe others understand better than I do.

I understand that it costs a lot to develop a reliably expanding bullet for each cartridge a manufacturer markets. There are also just a few major players in the police/personal defense civilian caliber market. That all said, it would seem to me, and I assume I may be wrong here, that there should be constant endeavors to improve so as to one-up the competition to build a better product within reason of course and budgets. There would seem to be a need for a uniform testing agency to guarantee the quality just as there is for say automobile safety since peoples lives hand in the balance on said products used by police and for self defense. Would such development not qualify for governmental grants at least as pertained to the development of Law Enforcement Ammo?

If, the answer to my above question is yes; it would seem to me there should be more and faster cartridge development going on. Just my thinking.

Please see my CLARIFICATION post below for more clarification of what I am saying as there is clearly a misunderstanding.