G'day folks,
As you're probably aware, the Model Number breaks down into info on the basics of the engine: capacity, design series, crankshaft orientation, carby type, PTO bearing type/auxiliary PTO's or reduction drive fitted/lube system, and starter type.
The Type Number - from one of the Briggs Service Manuals:
The type number identifies the engine's mechanical parts, color of paint, decals, Governed Speed, and Original Equipment Manufacturer.
As far as I can find out, Briggs have never released a key to interpreting Type Numbers on their own. It's very much an 'internal code', known only to them.
It's also possible that the exact meaning of a Type Number is model-number dependent too; i.e. a given Type Number may denote different things on differing models.
But as SuperDooper says, it is essential for determining part design changeovers, in many cases.