Yes...
... and no
You can install the game to the flash drive (just insert the flash drive, run the installer and select a folder on the flash drive into which to install it)
BUT...
You can't now unplug the flash drive, plug it in a different machine and expect the game to run, because the installer will almost certainly have modified the registry of your machine, added some dll files to your system32 folder, probably installed some data elsewhere on your machine, and perhaps installed some configuration files in the Windows folder as well.