Economic systems as cybernetically controlled networks of physical and biological processes

Theoretical concepts and principles for characterizing economic systems as networks of physical and biological material transformation processes with multilevel human cybernetic controlling mechanisms are presented. Transformation processes are represented mathematically by technically specific physical energy and skill-specific human time, with technologies as parameters. System boundaries can be defined and partitioned functionally for various analytical purposes: economic, engineering, management, or ecological. Interrelated opportunity sets for the exchange of resources, products, means of production, physical energy, and human time between enterprises are defined. Enterprises (individuals and groups of individuals) engage in four interrelated control activities. Social/political processes may use three generic control mechanisms. This structure provides a framework for investigating economic systems and their supporting natural systems, and the roles of technological and control innovation