Look for GI (global illumination) approaches. There are some really cool ways to do them (eg. cone voxel tracing), but they are really expensive. Most common for the last generation (PS3/XBOX360) were light probes/spherical harmonics (eg cube map lookup) or texture baked solutions.
Epic (unreal engine) and crytek have some impressive demos about the more advanced stuff, take a look at their publications/demonstrations/videos. An other good start is the gdc vault.