The spring must be tensioned. So it has to clip on the inside (toward the center of the hub) of the caliper bracket.
Actually, I made this mistake before and heard of many others doing the same. When this spring isn't tensioned, you will get deeper brake pedal travel. The reason is the outside of the floating caliper isn't tensioned by this spring s the caliper will twist under braking and the outer pad will mate against the rotor at an angle. So the piston has to travel further to get the necessary braking power with reduced contact surface area.
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2001 V70 T5 ASR, 2001 XC70, http://www.freewebs.com/howardsvolvos/
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