I'm going to let my dog shit on my neighbors driveway
Why would you let him poop in your neighbors driveway?
Because I want to teach him a lesson
You should clean up after your pets. There's no way that you can know that your neighbor has learned anything from your decision not to do so.  He might even blame his own puppy.
Okay, I'll do that.
It's good that you are willing to set a better example.  Your neighbor might not keep his puppy out of your property, but at least you won't be making the problem worse by retaliating.