The purpose of present article was to develop a framework of networked intelligence according to which human intelligent activity is a socially distributed and self-organized process involving networks of human actors and supporting artifacts. Just as the intelligence of a networked computer cannot be located inside of its processing unit, human intelligence cannot be found from inside of the human head; human intelligent activity is distributed across a network of cultural-historically developed tools and other artifacts, closely collaborating communities, and heterogeneous networks of people and artifacts. The development of tools and practices of creating, elaborating and sharing external representations, which allowed overcoming of natural limitations of human biological memory, has a critical evolutionary, historical, and socio-cognitive role. It was argued that humans have a species-specific capacity to fuse or merge their cognitions together into higher-level intellectual systems that allow sharing of knowledge and cognitive achievements. Networked intelligence has considerable psychological implications in respect of collective cognitive processes shaping and amplifying individual cognitive competencies through sustained working at the edge of ones competence. It was proposed that cognitive adaptation taking place in such a process may cause artifacts to become a part of ones cognitive architecture and, thereby, substantially transform the nature of cognitive activity. It was concluded that the human mind is a hybrid entity that relies on a symbiosis of biological and cultural processes.