A 914 engine (Type IV) originally came in at least 3 sizes, 1.7, 1.8, and 2.0 ltr. Obviously some are better performers than others,some are FI, and all are more expensive to upgrade than are type I engines.
However, it is a better starting point than is a Type I....see Jake Raby RAT site for a lot of excellent details....plan to spend at least 30-50% $ more per HP on a Type IV than on a Type I, but the Type IV should deliver more HP much longer, all other things being equal.
If you plan to use a torsion bar car such as standard Beck or Thunder Ranch 550 the additional length of the type IV block will make for a very tight fit at the front of the engine.
There are also a couple of different 914 5 speeds, one is a side shift. I don't remember which is which...which one is more desireable....but one is.....also, some who have done the 5 speed 914 transmission conversion have suggested that first gear is hard to use, hard to shift to second, and geared too low for a light weight car to be useful. I don't know that to be true, just passing some things I have heard.
Like the type 4 engine, the 914 tranny is likely to cost much more to modify than a type I tranny....
Also, be aware that the type IV 5 speed is IRS, to use it in a swing arm car requires extensive modification, not for the faint of heart...yes it can be done, but it is not easy. I have evaluated these changes for my car and have avoided them because of all the work required and problems to be overcome. If I were to build a new car and could order it built accordingly then I might do it...otherwise, no, not for me.....just my opinion....