The 66-year-old, who succeeded David Bernstein this week, was speaking at a council meeting at the national centre of coaching at St George's Park, Burton in his first official function as chairman.
"The one thing we all want is a successful England team and we haven't had any outstanding successes since 1990 so how do we get a successful team?," Dyke told the FA's in-house television channel, referring to the run to the World Cup semi-finals 23 years ago.
"Young English players are clearly important for the future. The question is: one, can we develop them?, and two, can we make sure they play? And the second point seems to be more difficult.
"Some clubs will tell you English kids just don't have the same technique (as overseas players) - lots of people tell me that's not true. The question is, why aren't they playing?".
Dyke, the former director general of the BBC and more recently chairman of League One side Brentford, said there were issues that needed to be addressed.
"English football is a great success in many areas but there are some areas where there are still problems and they need to be sorted," he explained. "Obviously I have just joined, I am looking around, I am talking to people and trying to learn.
"But having a plan is not enough, the hard bit is doing it. It's a tough job.
"I spent the last three years being a club chairman and when you are winning you are very popular and when you are losing you're not. It's as simple as that," said Dyke.
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