Why are they not entering contests? What is the point of their research if it isn't to engineer better algorithms for the task of machine learning? How do they prove that their research led to better algorithms?
It's a little like asking why Electrical Engineering PhDs are not designing the new iPhone (probably some are involved somewhere, I know). Research and applications are two separate endeavors.
Furthermore, a competition only compensates the winner. That's all well and good for competitions, but sometimes science advances as much by finding things that don't work (and why they don't work) as by finding things that do.