UT alums' start-up earns national R&D award

The start-up recently won an “R&D 100” award from R&D magazine, which the Chicago Tribune has described as the “Oscars of Innovation.”

Business partners Dan McDonald and Ron Michaels launched the biotechnology venture in 2004, having developed an innovative way to X-ray plant root systems. Ultimately, their nondestructive method of studying plant development may play a vital role in agricultural research into crop growth, biofuels, pest control and more.

For McDonald and Michaels, both UT alumni, developing the technology for their system was a natural extension of their previous career experiences, which included using X-rays to monitor the quality of expanded polystyrene foam in metal casting processes.

“I wondered what else we could do with this technology,” said McDonald, an electrical engineer who retired after 27 years at Oak Ridge National Laboratory. “I had kept up with trends in the industry and realized that plant biotechnology was a huge growth area.”

He joined forces with Michaels, who holds a doctorate in engineering science and had run an industrial X-ray company in Seymour.

Using low-density polystyrene foam as a container, as well as low-density synthetic soil for growing the plants, the two developed a system that utilizes low-energy X-rays to take quality composite images of root systems without destroying plants.

Michaels notes that their Seymour location has been an advantage.

“We have lower overhead here and can rent more space for less money,” he said. “Seymour is a very business-friendly place, and the cost of living is very reasonable.”

McDonald and Michaels have relied on different sources of government funding to continue their research and development.

A $50,000 grant from the Department of Energy in 2004 helped get PSC jump-started, and an $80,000 grant from the Department of Agriculture in 2006 funded an eight-month study of the rooting of poplar and willow trees.

This year they are developing a software-based knowledge-discovery tool under National Science Foundation funding and a partnership with the mathematics department at Duke University.

The USDA has recently extended funding into a phase-two grant, giving PSC $350,000 to work with the U.S. Forest Service on improving the rooting of poplar trees for carbons sequestration applications.

Meanwhile, McDonald and Michaels are working toward getting their system patented.

“We were denied some of our claims, but that’s normal. The patent office likes to move as quickly as possible toward denial,” Michaels said. “The challenge will be to show them the differences between our system and other plant-root visualization systems.”

PSC has established relationships with a number of regional organizations that its partners say have been valuable in providing expertise and resources.

“The Center for Entrepreneurial Growth in Oak Ridge has a comprehensive coaching and training program with day-long classes on key topics related to starting up a high-tech business,” McDonald explained. “They also have forums where we can present our business case to potential investors. They’ll help us put a presentation together, then give us opportunities to present to groups all over the U.S.”

PSC has also been able to work closely with several UT professors, a relationship that was fostered by the Center for Industrial Services, an agency of UT’s Institute for Public Service.

“Having UT close by has been a big help,” said McDonald. “CIS has matched us up with available federal funds from different government programs.”

He predicts that PSC’s sources of funding will eventually shift more toward commercial sales and services. The company is already providing some plant X-ray services for UT and other universities, and it worked with Duke University to install a commercial version of its imaging system there last November.

Another revenue source, championed by PSC’s chief scientist Bob Kodrzycki, may come from sales of services to forest-product companies looking to improve wood quality.

McDonald says he was prepared for the business’s financial and time-management challenges, but he has come to put a higher premium on the latter.

“We’ve sacrificed a lot of time with our families while running the risk of not getting a return on that investment,” he said.

He adds, however, that his goal has shifted beyond simply earning a living.

“We’re pushing ourselves to establish a multimillion-dollar employer in East Tennessee that will bring high-quality jobs here.”

Mitch Moore is a freelance writer in Maryville.

© 2007, Knoxville News Sentinel Co