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A cybernetic theory of hierarchical social systems is given, starting from an extension of Ashby's general theory of regulation and control to amplifying regulation. Regulation and control in human society are then discussed and the conditions for the existence of social classes and social hierarchy examined.

It is proved that the separation of internal state from external input, characteristic of automata, machines and machine‐like systems, is impossible in genuinely self‐steering systems. This excludes the man‐machine analogy and the automaton‐ or machine‐oriented approaches in General System Theory (e.g. that of Mesarovic and Takahara) as possible complete explanations of human action. A new approach based on a mathematical notion of actor‐system is suggested, and a fundamental theorem concerning the general form of state‐transition in such systems is derived.

The Finnish social philosopher Arvid Aulin has made an attempt to develop a theory of social progress based on cybernetic principles. In his sociocybernetics two fundamental concepts are “self‐steering” of actors and “hierarchy” in social systems. Emancipation processes are directed towards an increase of self‐steering and a decrease of outside steering of human actors. In his “Law of the Requisite Hierarchy”, Aulin formulates a negative relationship between the production level of a society and its optimal level of hierarchy; the higher the production per capita, the lower the necessary amount of hierarchy for that society; democracy flourishes as the economy grows. In this paper his arguments for and the consequences, especially for developing countries, of this fundamental law of sociocybernetics, are discussed.

After some critical notes on the long‐term regulation, requisite structure and requisite constitution as discussed by D. Sahal (Kybernetes 7, No. 1, 19–24, 1978), it is pointed out that W. Ross Ashby's Law of Requisite Variety implies a Principle of Variable Structure. Hereafter, a mathematical theory of amplifying regulation is given, and a new Law of Requisite Hierarchy is formulated. It is suggested to be fundamental in the theory of social organization.

The nature of sociocybernetics as a foundational science of human action, and some of the basic results in this line of research, and their consequences as to the governability, planning and control of social systems are discussed.

The paper aims to provide an assessment of a tool for the macro‐level measurement of intellectual capital developed by Corrado, Hulten and Sichel (CHS model).

The aim paper assesses the validity and accuracy of the CHS model in measuring intellectual capital in general and to see whether it has application at the national economy level.

The model's new accounting ideas have great potential, but some serious question marks remain. The key advantage of the model is that it accumulates capitalized intangibles over time. On the other hand, the elements of intellectual capital, i.e. spending on innovative property and economic competencies, software and other computerized information, are too vague and problematic.

CHS model is a rather frequently used method for measuring intellectual capital. However, its validity has not been under critical analysis or examination earlier. Therefore, the results of this paper bring important and valuable information into reliable measurement of intellectual capital and are a step forward to develop more valid methodologies within intellectual capital research.