More than 10,000 school pupils - about one in 10 in the region - have been diagnosed with dyslexia.
The Dyslexia Institute estimates one in eight people have the condition which involves difficulty learning to read, write and spell, but up to 25% of sufferers go undiagnosed.
The institute estimates undiagnosed dyslexia, leading to poor literacy and basic skills, costs the UK economy £1bn a year. That works out at about £34 for every UK taxpayer annually.
There is a higher incidence of dyslexia among prisoners, excluded pupils and the long-term unemployed, compared with the population as a whole.
The institute says a minimum of £368m per annum is spent on "unidentified dyslexics" in these sectors, a cost which they say could be substantially reduced if such individuals had been identified at an early age and offered adequate and appropriate support.
It is calling for better provision for the 375,000 children across the country who are dyslexic, including better screening and identification and improved access to learning.
Simon Dalby-Ball, headteacher at the Nunnykirk Centre for Dyslexia, near Morpeth, said: "Early identification is very important and they must have appropriate care from the moment of identification.
"The costs of provide a safe, caring environment to treat severe dyslexia is a fraction of the cost of the long-term problems later in life, not to mention the wasted potential and missed contributions to society.
"Providing the right help early in a child's life can help prevent major difficulties later.
"We should be investing in these children now which will reap rewards for the individual and the public purse."
The Dyslexia Institute works with dyslexic adults in partnership with the prison and probation services and pupil-referral units.
These projects aim to help adult learners improve their self-esteem and confidence.
Boy,14, gets GCSE against the odds
Alex Duncan struggled to overcome his dyslexia and learn to read and write but with specialist help he has passed his maths GCSE aged only 14.
He was diagnosed with dyslexia when he was nine years old but had the reading age of a six year old.
He had special support when he started middle school but he couldn't catch up, he was bullied and lost all his confidence.
His parents decided to send him to Nunnykirk, a specialist school , where he has thrived.
His mother Alison, an accountant said: "He was very unhappy at middle school and he was caught in a vicious circle. He needed special help but he was teased by the other children for being different.
"He became very low and I was very concerned but that has all changed and with specialist help he is making the most of his talent for maths and arts.
"I would encourage all parents who suspect their child is dyslexic to get their child tested and then make sure they get the help they need."
Northumberland