Iterative Dichotomiser Decision Tree for Risk Analysis in Innovation Management

This paper proposes a three phase framework for classifying innovative activities based on the corresponding calculated risk. In the developed model, the innovative activities are collected from the literature and are classified into risk classes using decision tree and Iterative Dichotomiser 3 (ID3) algorithm. The resulting rules of the tree can be proper information resources for innovators, investors and predictors of the innovation and related sector to take the best decision about their innovation, investment and risk management.