In a stinging report, pressure group The Taxpayers' Alliance has called for the abolition of it and eight others across England, claiming the money would have been better spent on tax cuts for small businesses.
Ben Farrugia, Policy Analyst at the TaxPayers' Alliance, said: "One NorthEast has cost taxpayers over £1.4 billion, but they have little to show for it.
"People are sick of paying through the nose for a massive, costly quango that seems to do nothing but waste money on pointless activities.
"The North East would be better off if this wasteful body was abolished and the money used to cut taxes on small businesses – that would be the best way to create jobs and help the region."
The agency was set up in April 1999 and given the task by the Government of helping the people of the North East create and sustain jobs, prosperity and a higher quality of life.
But the TPA says its findings demonstrate that the bodies, including One NorthEast, have failed to provide any worthwhile benefits.
The report states: "Judged on their performance though, RDAs have been an expensive failure. Over £15 billion of taxpayers' money has been spent over the past nine years, with little discernable impact.
"Annual increases in the number of jobs, and the number of people in work, have actually slowed since 1999."
But a One NorthEast spokesman said: "One NorthEast has consistently met or exceeded key Government performance targets since it was established nearly ten years ago.
"The latest statistics show that the regional development agency helped create more than 17,000 new jobs in the region in the last financial year and assisted over 23,000 firms improve their performance.
"Importantly, at a time of great economic challenge, there is strong support for One NorthEast across the business, public and voluntary sectors for the economic goals set out in the Regional Economic Strategy."
He added: "We strive to achieve maximum value for every pound of taxpayers' money we invest in the region, to support and grow business and drive new opportunities.
"In recent months we have invested more than £30 million in an improved programme to raise the productivity of businesses and financially supported the creation of hundreds of new jobs."