I don't know how secret this stuff is; I think if you poke around NANOG, you'll find a lot of material. If there's something that makes DDoS mitigation mysterious, it's how ad hoc all this stuff is.
What I've had firsthand experience with is:
* Tier-1's profile all their traffic, either directly or with flow export, and will get alerts if they see spikes to certain netblocks, or spikes to specific /32s with specific characteristics.
* Inside a Tier-1, the third-tier support people usually have additional monitoring they can enable for customers if an incident has been escalated to them. They get hundreds of these calls a week.
* A lot of Tier-1's can quickly reroute traffic to a specific /32 to run through special-purpose filtering setups, which might be a DDoS box like a Cisco/Riverhead, or an IPS like TippingPoint, or even just a Cat with lots of TCAM space set aside for filtering.
* A lot of Tier-1's --- maybe all at this point --- have some mechanism set up to share signatures of attacks so they can push filtering further upstream. When I watched that stuff happening, the sense I got of it was that this was really reserved for things like global botnet C&C.
What I'd add to the discussion on products is, most of what's built to combat DDoS is really only useful if you sell transit. If you're a Fortune 500, I know there are ISPs where you can get Cisco or Arbor gear deployed on the head end specially for you. But that's a Fortune 500, not 37 Signals.