In the early days, life was simple. We did important things like make spears and arrowheads. The amount of knowledge needed to make these items, however, was small enough that a single person could master their production. There was no need for a large division of labor and new knowledge was extremely precious. If you got new knowledge, you did not want to share it. After all, in a world where most knowledge can fit in someone’s head, stealing ideas is easy, and appropriating the value of the ideas you generate is hard.
At some point, however, the amount of knowledge required to make things began to exceed the cognitive limit of a single human being. Things could only be done in teams, and sharing information among team members was required to build these complex items. Organizations were born as our social skills began to compensate for our limited cognitive skills. Society, however, kept on accruing more and more knowledge, and the cognitive limit of organizations, just like that of the spearmaker, was ultimately reached.