From an article by David J. Unger in The Guardian:
Then, sometime in the middle of the 20th century, scientists at MIT, Stanford and the US Department of Defense begin to search for a better way to store and share their ideas. They experiment with mashing up old rags and wood to mix with water, draining the mixture through a screen and drying the matted fibres into sheets. The breakthrough makes its way into civilian life, and by the turn of the millennium most people in the developed world carry a pad of paper in their pocket...
Just a snippet from an interesting article that you can click to through our