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In this paper we review recent developments in techniques to represent data in terms of its local scale components. These techniques enable us to obtain data compression by eliminating scale-coefficients which are sufficiently small. This capability for data compression can be used to reduce the cost of many numerical solution algorithms by either applying it to the numerical solution operator in order to get an approximate sparse representation, or by applying it to the numerical solution itself in order to reduce the number of quantities that need to be computed.