How does a company do engine testing when it develops a new engine?

Does it drive them in the vehicles for many miles or do they just test them on an engine stand for a while? Just curious it this entails actual driving of the vehicle it is going into… For example, 2010 Ford SHO, how would they test the engine longevity or theoretically, can they?
Such as testing the longevity of the turbo set-up. How do they know it won’t start getting runaway?



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