No reduce would be necessary to index by isbn. Think of reduce when you need aggregates (sum, count, average, min, max, etc.)
In fact, you don't even need to write the index yourself. Just let Raven do the work for you with it's dynamic index features.
var librariesContainingTheBook = session.Query<Library>()
.Where(x=> x.Books.Any(y=> y.isbn == yourIsbn))
RavenDB should be able to parse this query and build the index automatically.