Per Innovative's instructions:
"Ideally, the O2 sensor should be placed at least 24 inches downstream from the cylinder head exhaust ports. This ensures that the O2 sensor takes its measurements after the exhaust gas from each primary merges into a common collector. "
"Positioning the sensor too close to the exhaust ports can expose it to high exhaust gas temperature (EGT) as well as over-cooling from the high-velocity exhaust gas flowing over the sensor. Likewise, if an engine runs excessively rich, an oxygen sensor that’s positioned farther downstream is less prone to fouling. Although these extreme conditions aren’t a concern in most street applications, placing the sensor farther down the exhaust tract is rarely detrimental."
"Once establishing how far downstream in the exhaust system to position the wideband O2 sensor, the bung should be mounted between 9 o’clock and 3 o’clock. Condensation buildup can destroy a sensor very quickly, so mounting the sensor between 9 o’clock and 3 o’clock protects it from water build-up at the bottom of the exhaust pipe. If there is sufficient space between the top of the exhaust pipe and floorboard, mounting the sensor at 12 o’clock is ideal."