Johanna Shelton and Michelle Lee of Google write on patent reform-

...the patent system has not kept pace with the changes in the innovation economy. Google and other technology companies increasingly face mounting legal costs to defend against frivolous patent claims from parties gaming the system to forestall competition or reap windfall profits.
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Some have argued recently that reforms to the patent system would somehow make the U.S. less competitive in the world. That couldn't be further from the truth... Without a modernized patent system, U.S. companies are at a competitive disadvantage, spending resources on unnecessary litigation and unwarranted licensing instead of on innovation.

Right, the patent system needs improvement. The major problems are patent quality and the cost of excessive litigation. With reform, an optimized patent system can continue to stir commercialization and innovation. Proper changes will make the patent system stronger.

While patent reform is important, lets remember that innovation has progressed, and the patent system has played a central role in innovation. I"m constantly amused at the hysteria with which some patent critics decry the need to eliminate software patents or bemoan the stifling effects of today's patent system- their arguments overreact to the situation at hand. As Prof. Merges argues, patents are normalizing and becoming more integrated into the current innovation landscape. Courts, investors and firms have simply gone through a transition period where innovation still sustained.