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It is widely believed that theory is useful in physics because it describessimple systems and that strictly empirical phenomenological approaches arenecessary for complex biological and social systems. Here we prove based uponan analysis of the information that can be obtained from experimentalobservations that theory is even more essential in the understanding of complexsystems. Implications of this proof revise the general understanding of how wecan understand complex systems including the behaviorist approach to humanbehavior, problems with testing engineered systems, and medical experimentationfor evaluating treatments and the FDA approval of medications. Each of theseapproaches are inherently limited in their ability to characterize real worldsystems due to the large number of conditions that can affect their behavior.Models are necessary as they can help to characterize behavior withoutrequiring observations for all possible conditions. The testing of models byempirical observations enhances the utility of those observations. For systemsfor which adequate models have not been developed, or are not practical, thelimitations of empirical testing lead to uncertainty in our knowledge and risksin individual, organizational and social policy decisions. These risks shouldbe recognized and inform our decisions.

The Limits of Phenomenology: From Behaviorism to Drug Testing and Engineering Design