Hayek has been one of the major figures in the history of economic thought who has been interested in the evolution of institutions. Considered in this paper is the relationship between Hayek and Carl Menger, the founder of the Austrian School of Economics. Although they shared the basic concept of spontaneous order, as previous literature shows, they have a totally different idea about one important institution, the state. In Hayek's opinion the state is not a spontaneous order, but an organization made from above. Menger saw the matter differently. He tried to capture the state as a system which can be reduced to the self-interest of economic agents. Thus, in Menger's view, the state is a good example of spontaneous order.