Creating an Oracle 11.2-Compatible Database in Oracle 12.2.0.1
Long story short:

If you want a 11.2.0.4 database, then use 11.2.0.4. Yes, I know, downloading 11.2.0.4 requires a valid support contract which most visitors here do not have, but you can still download a virtual machine with that version at Pre-built Virtual Machine for Oracle Data Integrator 12c Getting Started Guide.

And here is how to create a 12.2 database with compatible set to 11.2.0.4 (no, I did not even bother with DBCA):

[oracle@o71 ~]$ cat ${ORACLE_HOME}/dbs/init${ORACLE_SID}.ora
*.audit_file_dest='/u01/app/oracle/admin/EX/adump'
*.audit_trail='db'
*.compatible='11.2.0.4.0'
*.control_files='/oradata/EX/control01.ctl','/oradata/EX/control02.ctl'
*.db_block_size=8192
*.db_create_file_dest='/oradata/EX'
*.db_name='EX'
*.diagnostic_dest='/u01/app/oracle'
*.dispatchers='(PROTOCOL=TCP) (SERVICE=EXXDB)'
*.filesystemio_options='setall'
*.nls_language='AMERICAN'
*.nls_territory='AMERICA'
*.open_cursors=300
*.pga_aggregate_target=256m
*.processes=320
*.remote_login_passwordfile='EXCLUSIVE'
*.sga_target=1024m
[oracle@o71 ~]$ echo ${ORACLE_SID}
EX

[oracle@o71 ~]$ sqlplus / as sysdba

SQL*Plus: Release 12.2.0.1.0 Production on Mon Dec 3 20:06:47 2018

Copyright (c) 1982, 2016, Oracle.  All rights reserved.

Connected to an idle instance.

SQL&gt; create spfile from pfile;

File created.

SQL&gt; startup nomount
ORACLE instance started.

Total System Global Area 1073741824 bytes
Fixed Size                  8628936 bytes
Variable Size             394265912 bytes
Database Buffers          662700032 bytes
Redo Buffers                8146944 bytes
SQL&gt; create database;

Database created.


The above creates the database without any dictionary views and packages. I performed the next steps in UPGRADE mode, because without that, my database ended up with several invalid objects that could not be compiled at all.

SQL&gt; shu immediate
Database closed.
Database dismounted.
ORACLE instance shut down.
SQL&gt; startup upgrade
ORACLE instance started.

Total System Global Area 1073741824 bytes
Fixed Size                  8628936 bytes
Variable Size             394265912 bytes
Database Buffers          662700032 bytes
Redo Buffers                8146944 bytes
Database mounted.
Database opened.

SQL&gt; @?/rdbms/admin/catalog.sql
...
SQL&gt; @?/rdbms/admin/catproc.sql
...
SQL&gt; @?/rdbms/admin/utlrp.sql
...
SQL&gt; alter user system identified by oracle;

User altered.

SQL&gt; shu immediate
Database closed.
Database dismounted.
ORACLE instance shut down.
SQL&gt; startup
ORACLE instance started.

Total System Global Area 1073741824 bytes
Fixed Size                  8628936 bytes
Variable Size             394265912 bytes
Database Buffers          662700032 bytes
Redo Buffers                8146944 bytes
Database mounted.
Database opened.

SQL&gt; @?/sqlplus/admin/pupbld.sql
...


And done.

SQL&gt; exit
Disconnected from Oracle Database 12c Enterprise Edition Release 12.2.0.1.0 - 64bit Production
[oracle@o71 ~]$ sqlplus / as sysdba

SQL*Plus: Release 12.2.0.1.0 Production on Mon Dec 3 21:14:45 2018

Copyright (c) 1982, 2016, Oracle.  All rights reserved.


Connected to:
Oracle Database 12c Enterprise Edition Release 12.2.0.1.0 - 64bit Production

SQL&gt; show parameter compat

NAME                                 TYPE        VALUE
------------------------------------ ----------- ------------------------------
compatible                           string      11.2.0.4.0
noncdb_compatible                    boolean     FALSE
plsql_v2_compatibility               boolean     FALSE

SQL&gt; select comp_name, version, status from dba_registry;

COMP_NAME                                VERSION                        STATUS
---------------------------------------- ------------------------------ -----------
Oracle Database Catalog Views            12.2.0.1.0                     VALID
Oracle Database Packages and Types       12.2.0.1.0                     VALID
Oracle XML Database                      12.2.0.1.0                     VALID

SQL&gt; select count(*) from dba_invalid_objects;

  COUNT(*)
----------
         0

SQL&gt; create table t1 (id number generated always as identity);
create table t1 (id number generated always as identity)
*
ERROR at line 1:
ORA-00406: COMPATIBLE parameter needs to be 12.0.0.0.0 or greater
ORA-00722: Feature "SQL identity columns"


Steps are from Creating a Database with the CREATE DATABASE Statement

I have seen people using 12.1.0.2 production data warehouses intentionally with optimizer_features_enable=9.2.0.8, but this was new...