Do you think there would be a difference in performance if the driven gear had the teeth on the outside or inside of the wheel and why?

Yes, there would be a difference in performance depending on whether the teeth of the driven gear are on the outside or inside of the wheel.

If the teeth are on the outside of the wheel, it would result in a larger diameter for the gear. This larger diameter would provide a higher gear ratio, meaning the driven gear would rotate slower but with more torque. This configuration would be suitable for situations where a higher torque output is required, such as in heavy machinery or vehicles that need more pulling power.

On the other hand, if the teeth are on the inside of the wheel, it would result in a smaller diameter for the gear. This smaller diameter would provide a lower gear ratio, meaning the driven gear would rotate faster but with less torque. This configuration would be suitable for situations where a higher rotational speed is needed, such as in small-scale machines or devices that require quick and precise movements.

So, the choice of teeth position on the driven gear depends on the specific requirements of the application, whether it demands higher torque or higher speed.