Classifying Innovative Activities Using Decision Tree and Gini Index

Abstract

This paper proposes a framework for classification of innovative activities in production systems based on corresponding calculated risk intensity using decision tree method. A three-step process is developed. The basis of the framework is the innovative activities collected from the literature. These activities are collected from the related literature and are classified by decision tree based on Gini Index. The configured tree is then used to extract and compose rules applying rule mining technique. The resulting rules can be useful sources of information for managers, investors and predictors of innovation domain to take the appropriate approaches for innovation risk management and innovation investment.