For any given algebra of local observables in relativistic quantum field theory there exists an associated scaling algebra which permits one to introduce renormalization group transformations and to construct the scaling (short distance) limit of the theory. On the basis of this result it is discussed how the phase space properties of a theory determine the structure of its scaling limit. Bounds on the number of local degrees of freedom appearing in the scaling limit are given which allow one to distinguish between theories with classical and quantum scaling limits. The results can also be used to establish physically significant algebraic properties of the scaling limit theories, such as the split property.