Abstract:Knowledge can be divided into two parts, one is about how humans organize themselves, and the other is about the nature. Improvement of per capita knowledge distribution level decides the institution evolution, therefore, the essence of institution is about the knowledge of organize themselves. However, institution evolution is subject to variance of per capita knowledge distribution and quantity of crowd, which is positive to variance and opposite to quantity of crowd. Certainty was given by institution evolution to the technical improvement, and keep growth of technology. Finally, the technical improvement accomplished economic growth in the modern sense and set up the logic roadmap from knowledge distribution to the economic growth.