Chimbu and Tailwheel make good points.
As for Continentals "huge investment in manufacturing technology", that's BS. Their tooling would have been amortised years ago and the reason their engines have a reputation for unreliability is precisely because they have NOT invested in manufacturing technology or they would have cured their problems years ago. My guess is that successive managers raped the business and deferred investment in pursuit of profits until their was nothing but a shell left, hence the sale.
I am continually bombarded by helpful friends who go on about "1940's technology".
"Why not Overhead Cams?" They ask. To turn a prop at no more than about 2800rpm? Even with gears that's still maybe 5800 rpm in a Rotax, what's the point of overhead cams?
"Fuel injection! Engine management computers! CDI ignition! Variable valve timing!" They scream. What? For an engine that is going to spend its life between 2400 - 2800 rpm at 55% - 100% of its power? And the engine is now reliant on a constant source of Twelve volt electricity. Are we going for dual redundancy here? For what gain? Automotive engines work at a span of 10% to 70% of their available power most of the time. That is what makes these technologies worthwhile - the ability to control economy over a wider power spectrum.
The Lycosaurus is designed to get an FAR approved airframe off the ground and drag it through the air in an approved aviating manner, and to do it reliably with some form of performance. If we wish to change the airframe we probably could use an engine with all that wonderful technology.
..We would design, say, an engine that produced 1000HP on take off. It would then be happy sitting in the cruise at say 20% power - 200HP with perfect economy.
Now what sort of airframe would we put around that? Probably a tiny little wing to maximise speed. With 1000Hp on takeoff, we don't need much wing area do we? But we have to land it, so add double slotted flaps, leading edge slats and spoilers for controllability and a reasonable approach speed....
You see how the compromises work?