The patent system is not for encouraging innovation, it is for encouraging people to share the secrets of their innovation. Without a patent system we would go back to the guild system of the middle ages, in other words, the protection of trade secrets.
You're right of course, we're much better off with a working patent system than with the system that came before it. However I'm personally not convinced that the patent system in its current form (at least in the US thought possibly in some other places too) is either working, or better for innovation than no system at all.
You're right of course, we're much better off with a working patent system than with the system that came before it. However I'm personally not convinced that the patent system in its current form (at least in the US thought possibly in some other places too) is either working, or better for innovation than no system at all.