Romeo Brunetti, Klaus Fredenhagen Microlocal Analysis and Interacting Quantum Field Theories: Renormalization on Physical Backgrounds (660K, postscript) ABSTRACT. We present a perturbative construction of interacting quantum field theories on smooth globally hyperbolic (curved) space-times. We develop a purely local version of the Stueckelberg-Bogoliubov-Epstein-Glaser method of renormalization using techniques from microlocal analysis. Relying on recent results of Radzikowski, Koehler and the authors about a formulation of a local spectrum condition in terms of wave front sets of correlation functions of quantum fields on curved space-times, we construct time-ordered operator-valued products of Wick polynomials of free fields. They serve as building blocks for a local (perturbative) definition of interacting fields. Renormalization in this framework amounts to a microlocal generalization of Steinmann scaling degree corresponding to the degree of divergence in other renormalization schemes. As a result, we prove that the usual perturbative classification of interacting quantum field theories holds also on curved space-times. Finite renromalizations are deferred to a subsequent paper. As byproducts, we describe a perturbative construction of local algebras of observables, present a new definition of Wick polynomials as operator-valued distributions on a natural domain, and we find a general method for the extension of distributions which were defined on the complement of some surface.