The paper introduces the notion of definable compactness and within the con
text of o-minimal structures proves several topological properties of defin
ably compact spaces. In particular a definable set in an o-minimal structur
e is definably compact (with respect to the subspace topology) if and only
if it is closed and bounded. Definable compactness is then applied to the s
tudy of groups and rings in o-minimal structures. The main result proved is
that any infinite definable group in an o-minimal structure that is not de
finably compact contains a definable torsion-free subgroup of dimension 1.
With this theorem, a complete characterization is given of all rings withou
t zero divisors that are definable in o-minimal structures. The paper concl
udes with several examples illustrating some limitations on extending the t
heorem.